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Unemployment Duration (unemployment + duration)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	91%

Selected Abstracts

UNEMPLOYMENT DURATION, BENEFIT DURATION AND THE BUSINESS CYCLE

THE ECONOMIC JOURNAL, Issue 479 2002
Olympia Bover
In this paper we study the effects of unemployment benefit duration and the business cycle on unemployment duration. We construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987,94. Estimated discrete hazard models indicate that receipt of unemployment benefits significantly reduces the hazard of leaving unemployment. At durations of three months, when the largest effects occur, the hazard for workers without benefits is twice as large as that for workers with benefits. Favourable business conditions increase the hazard of leaving unemployment. At sample-period magnitudes, this effect is significantly smaller than that of benefit receipt. [source]

Unemployment Duration in Non-Metropolitan Labor Markets

GROWTH AND CHANGE, Issue 2 2001
Bradford F. Mills
Non-metropolitan areas of the U.S have experienced significant structural economic changes in recent decades. These changes have raised concerns that some non-metropolitan workers may face significant costs to employment displacements associated with economic adjustments. This paper explores the roles that linkages to metropolitan labor markets, area labor market conditions, and individual attributes play in determining the rates of exit from unemployment to employment among non-metropolitan area residents. Adjacency to a metropolitan area is found to significantly increase transition rates from unemployment to employment among displaced non-metropolitan workers, but local economic conditions are found to have relatively weak or insignificant effects on transition rates. Also, lack of post-high school education and minority status both significantly reduce rates of exit from unemployment in non-metropolitan areas following employmentdisplacement. [source]

Rehires and Unemployment Duration in the Swedish Labour Market , New Evidence of Temporary Layoffs

LABOUR, Issue 2 2002
Fredrik JanssonArticle first published online: 7 JAN 200
The paper investigates temporary layoffs in the Swedish labour market. Previous reports of few temporary layoffs are rejected. About 45 percent of unemployed people who found a job returned to a previous employer. As a stock measure, 10 percent of the unemployed are on temporary layoff. Using new job and recall as distinct exits in a competing risks model, one cannot reject a horizontal duration dependence for new jobs, while the recall hazard shows a strong, negative duration dependence. Clearer predictions of the effect of education on job probabilities are also found. Further, the results probably have implications for the interpretation of several policy parameters, including labour market programme outcomes. [source]

Noncontractible Heterogeneity in Directed Search

ECONOMETRICA, Issue 4 2010
Michael Peters
This paper provides a directed search model designed to explain the residual part of wage variation left over after the impact of education and other observable worker characteristics have been removed. Workers have private information about their characteristics at the time they apply for jobs. Firms value these characteristics differently and can observe them once workers apply. They hire the worker they most prefer. However, the characteristics are not contractible, so firms cannot condition their wages on them. This paper shows how to extend arguments from directed search to handle this, allowing for arbitrary distributions of worker and firm types. The model is used to provide a functional relationship that ties together the wage distribution and the wage,duration function. This relationship provides a testable implication of the model. This relationship suggests a common property of wage distributions that guarantees that workers who leave unemployment at the highest wages also have the shortest unemployment duration. This is in strict contrast to the usual (and somewhat implausible) directed search story in which high wages are always accompanied by higher probability of unemployment. [source]

An Equilibrium Theory of Learning, Search, and Wages

ECONOMETRICA, Issue 2 2010
Francisco M. Gonzalez
We examine the labor market effects of incomplete information about the workers' own job-finding process. Search outcomes convey valuable information, and learning from search generates endogenous heterogeneity in workers' beliefs about their job-finding probability. We characterize this process and analyze its interactions with job creation and wage determination. Our theory sheds new light on how unemployment can affect workers' labor market outcomes and wage determination, providing a rational explanation for discouragement as the consequence of negative search outcomes. In particular, longer unemployment durations are likely to be followed by lower reemployment wages because a worker's beliefs about his job-finding process deteriorate with unemployment duration. Moreover, our analysis provides a set of useful results on dynamic programming with optimal learning. [source]

Social Contacts and Occupational Choice

ECONOMICA, Issue 305 2010
SAMUEL BENTOLILA
Social contacts help to find jobs, but not necessarily in the occupations where workers are most productive. Hence social contacts can generate mismatch between workers' occupational choices and their productive advantage. Accordingly, social networks can lead to low labour force quality, low returns to firms' investment and depressed aggregate productivity. We analyse surveys from both the US and Europe including information on job finding through contacts. Consistent with our predictions, contacts reduce unemployment duration by 1,3 months on average, but they are associated with wage discounts of at least 2.5%. We also find some evidence of negative externalities on aggregate productivity. [source]

Did the Hartz Reforms Speed-Up the Matching Process?

GERMAN ECONOMIC REVIEW, Issue 3 2009
A Macro-Evaluation Using Empirical Matching Functions
Empirical matching function; stock-flow matching; Hartz reform Abstract. Starting in January 2003, Germany implemented the first two so-called Hartz reforms, followed by the third and fourth packages of Hartz reforms in January 2004 and January 2005, respectively. The aim of these reforms was to accelerate labor market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms, this paper provides a first attempt to evaluate the overall effectiveness of the first two reform waves, Hartz I/II and III, in speeding up the matching process between unemployed and vacant jobs. The analysis is conceptually rooted in the flow-based view underlying the reforms, estimating the structural features of the matching process. The results indicate that the reforms indeed had an impact in making the labor market more dynamic and accelerating the matching process. [source]

Unemployment Determinants for Women in Spain

LABOUR, Issue 1 2000
Nieves Lázaro
Spain has one of the highest rates of unemployment among OECD countries. Some explanations for this stress the importance of unemployment duration compared with entry rates to the unemployment pool. Long-term unemployment rates are particularly high among women in Spain. The object of this paper is to investigate the determinants of unemployment duration among women. It will consider personal characteristics (education and age), family background, socio-economic variables (the number of household earners and household income) and the effect of unemployment benefits, using data from the Household Expenditure Survey 1990,91. [source]

UNEMPLOYMENT DURATION, BENEFIT DURATION AND THE BUSINESS CYCLE

An Equilibrium Theory of Learning, Search, and Wages

Household Unemployment and the Labour Supply of Married Women

ECONOMICA, Issue 270 2001
Paul Bingley
A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. [source]

Housing Tenure, Job Mobility and Unemployment in the UK,

THE ECONOMIC JOURNAL, Issue 527 2008
Harminder Battu
This article examines the effects of housing tenure on individuals' job and unemployment durations in the UK. We examine job to job transitions and transitions from unemployment. We take account of whether or not the arrival of a job was synonymous with a non-local residential move, tenure endogeneity and unobserved heterogeneity. We find that home-ownership is a constraint for the employed and public renting is more of a constraint for the unemployed. Employed home-owners have a lower transition into employment with a distant move and unemployed public renters have a lower probability of gaining employment in more distant labour markets. [source]