Job search with nonparticipation

Frijters, Paul & van der Klaauw, Bas (2006) Job search with nonparticipation. The Economic Journal, 116(508), pp. 45-83.

View at publisher

Abstract

In a non-stationary job search model we allow unemployed workers to have a permanent option to leave the labour force. Transitions into nonparticipation occur when reservation wages drop below the utility of being nonparticipant. Taking account of these transitions allows the identification of duration dependence in the job offer arrival rate and the wage offer distribution. We estimate the structural model with individual data from the German Socio-Economic Panel and use simulated maximum likelihood. The results show that the presence of significant negative duration dependence in the wage offer distribution causes reservation wages to decrease. The rate at which job offers arrive is constant over the unemployment duration. These findings provide micro evidence that the job search environment of unemployed workers is non-stationary because of loss of skills.

Impact and interest:

15 citations in Scopus
Search Google Scholar™
14 citations in Web of Science®

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

178 since deposited on 14 Jun 2006
4 in the past twelve months

Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 3625
Item Type: Journal Article
Refereed: Yes
Keywords: labour markets, nonparticipation, non stationary search, job activation policy, loss, of, skill, discouragement
DOI: 10.1111/j.1468-0297.2006.01047.x
ISSN: 0013-0133
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2006 Blackwell Publishing
Copyright Statement: The definitive version is available at www.blackwell-synergy.com
Deposited On: 14 Jun 2006 00:00
Last Modified: 29 Feb 2012 13:20

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page