Can Skill Decay Increase Search Effort?
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.
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|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.|
Web page: http://www.greqam.fr/
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
- Berg, G.J. & Ours, J.C., 1993.
"Unemployment dynamics and duration dependence in France, the Netherlands and the UK,"
Serie Research Memoranda
0038, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- van Ours, J.C. & van den Berg, G.J., 1994. "Unemployment Dynamics and Duration Dependence in France, the Netherlands and the UK," Other publications TiSEM 941b66a3-a3a7-4182-9d31-e, Tilburg University, School of Economics and Management.
- van den Berg, G. & van Ours, J.C., 1996.
"Unemployment dynamics and duration dependence,"
Other publications TiSEM
4374742f-8d86-458d-9ab3-6, Tilburg University, School of Economics and Management.
- van den Berg, Gerard J & van Ours, Jan C, 1994. "Unemployment Dynamics and Duration Dependence in France, the Netherlands and the United Kingdom," Economic Journal, Royal Economic Society, vol. 104(423), pages 432-43, March.
- Olivier Jean Blanchard & Peter Diamond, 1990.
"Ranking, Unemployment Duration, and Wages,"
NBER Working Papers
3387, National Bureau of Economic Research, Inc.
- Coles, Melvyn & Masters, Adrian, 2000. "Retraining and long-term unemployment in a model of unlearning by not doing," European Economic Review, Elsevier, vol. 44(9), pages 1801-1822, October.
- Portugal, Pedro & Addison, John T., 2000. "Short- and long-term unemployment," Economics Letters, Elsevier, vol. 66(1), pages 107-112, January.
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