IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/0979.html
   My bibliography  Save this paper

Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?

Author

Listed:
  • Christopher J. Flinn
  • James J. Heckman

Abstract

This paper formulates and tests the hypothesis that the categories unemployed and out of the labor force are behaviorally distinct labor force states. Our empirical results indicate that they are. In the empirically relevant range the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment. This evidence is shown to be consistent with a simple job search model of productive unemployment with log concave wage offer distributions. We prove that if unemployed workers receive job offers more frequently than workers out of the labor force, and if wage offer distributions are log concave, the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment.

Suggested Citation

  • Christopher J. Flinn & James J. Heckman, 1982. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," NBER Working Papers 0979, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:0979
    Note: LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w0979.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard B. Freeman & David A. Wise, 1982. "The Youth Labor Market Problem: Its Nature, Causes, and Consequences," NBER Books, National Bureau of Economic Research, Inc, number free82-1, January-J.
    2. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    3. Kim B. Clark & Lawrence H. Summers, 1982. "The Dynamics of Youth Unemployment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234, National Bureau of Economic Research, Inc.
    4. Freeman, Richard B. & Wise, David A. (ed.), 1982. "The Youth Labor Market Problem," National Bureau of Economic Research Books, University of Chicago Press, number 9780226261614.
    5. Christopher J. Flinn & James J. Heckman, 1982. "Models for the Analysis of Labor Force Dynamics," NBER Working Papers 0857, National Bureau of Economic Research, Inc.
    6. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lisa M. Lynch, 1986. "The Youth Labor Market in the 80s: Determinants of Re-Employment Probabilities for Young Men and Women," NBER Working Papers 2021, National Bureau of Economic Research, Inc.
    2. Bart Cockx & Matteo Picchio, 2013. "Scarring effects of remaining unemployed for long-term unemployed school-leavers," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 951-980, October.
    3. Mijares, John C., 1997. "Early drug use and quits and discharges among adolescent males," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 26(4), pages 439-458.
    4. Laurence Lizé & Géraldine Rieucau, 2016. "Travailler dans une même entreprise pendant et après ses études," Post-Print hal-01730581, HAL.
    5. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    6. Laurence Lizé & Géraldine Rieucau, 2017. "Travailler pendant ses études et s'insérer dans la vie active : premières tendances et résultats, Générations 1998, 2004 et 2010," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01730591, HAL.
    7. V. Joseph Hotz & Lixin Colin Xu & Marta Tienda & Avner Ahituv, 2002. "Are There Returns To The Wages Of Young Men From Working While In School?," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 221-236, May.
    8. Jesse Rothstein, 2012. "The Labor Market Four Years into the Crisis: Assessing Structural Explanations," ILR Review, Cornell University, ILR School, vol. 65(3), pages 467-500, July.
    9. Moffat, John & Yoo, Hong Il, 2015. "Who are the unemployed? Evidence from the United Kingdom," Economics Letters, Elsevier, vol. 132(C), pages 61-64.
    10. Harry J. Holzer, 1986. "Black Youth Nonemployment: Duration and Job Search," NBER Chapters, in: The Black Youth Employment Crisis, pages 23-73, National Bureau of Economic Research, Inc.
    11. Cahuc, Pierre & Malherbet, Franck & Prat, Julien, 2019. "The Detrimental Effect of Job Protection on Employment: Evidence from France," CEPR Discussion Papers 13767, C.E.P.R. Discussion Papers.
    12. Dennis Tamesberger & Johann Bacher, 2020. "COVID-19 Crisis: How to Avoid a ‘Lost Generation’," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 232-238, July.
    13. Charles T. Carlstrom, 1989. "Turnover, wages, and adverse selection," Economic Review, Federal Reserve Bank of Cleveland, vol. 25(Q I), pages 18-28.
    14. Laurence Lizé & Géraldine Rieucau, 2017. "Travailler pendant ses études et s'insérer dans la vie active : premières tendances et résultats, Générations 1998, 2004 et 2010," Post-Print hal-01730591, HAL.
    15. Mavromaras, Kostas & Polidano, Cain, 2011. "NILS Working paper no 165. Improving the employment rates of people with disabilities through vocational education," NILS Working Papers 26068, National Institute of Labour Studies.
    16. Rothstein, Jesse, 2015. "The Great Recession and its Aftermath: What Role for Structural Changes?," Department of Economics, Working Paper Series qt0gn7w7hn, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    17. Davis, Steven J. & Faberman, R. Jason & Haltiwanger, John, 2012. "Labor market flows in the cross section and over time," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 1-18.
    18. Kevin Donovan & Jianyu Lu & Todd Schoellman, 2018. "Labor Market Flows and Development," 2018 Meeting Papers 976, Society for Economic Dynamics.
    19. Mavromaras, Kostas & Polidano, Cain, 2011. "Improving the Employment Rates of People with Disabilities through Vocational Education," IZA Discussion Papers 5548, Institute of Labor Economics (IZA).
    20. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0979. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.