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Can Skill Decay Increase Search Effort?

Author

Listed:
  • Charlot, O.
  • Decreuse, B.

Abstract

We consider the search behaviour of an infinite lifetime worker whose expected matching gains are assumed to be decreasing over the spell of unemployment. The search effort is linked positively to future earnings and negatively to the worker's reservation wage. We show that this may give rise to non monotonous hazard rates.

Suggested Citation

  • Charlot, O. & Decreuse, B., 2000. "Can Skill Decay Increase Search Effort?," G.R.E.Q.A.M. 00a07, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:00a07
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    Cited by:

    1. is not listed on IDEAS
    2. Andersen, Signe Hald, 2010. "The cost of sickness: On the effect of the duration of sick leave on post-sick leave earnings," Social Science & Medicine, Elsevier, vol. 70(10), pages 1581-1589, May.
    3. Ortego-Marti, Victor, 2017. "Differences in skill loss during unemployment across industries and occupations," Economics Letters, Elsevier, vol. 161(C), pages 31-33.

    More about this item

    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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