The Value of Jobs in an Unclosed Matching Model of Long-Term Unemployment
This is a study in the field of unemployment and unemployability. I build an unclosed matching model of unemployment, where matching rates are exogenous. The value of an unfilled job depends on the average skill of the unemployed, who are supposed to lose (absolutely, or relatively) some of their skills during the unemployment episode. Thus, fimrs determine endogeneously an unemployment spell above which an unemployed is unemployable. This spell decreases as firms expect their vacancies to be high valued. While choosing the limit unemployment tenure, firms also change the stationnary distribution of skills.
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