Abstract:
This article uses a two-industry model of unemployment duration and job search to estimate rates of transition of displaced workers from unemployment to employment, distinguishing between employment in a worker's previous industry and in other industries. The competing-risks model allows inferences about search strategies to be drawn from data concerning employment outcomes and allows tests of some fundamental implications of search theory. There is evidence that improvements in the prospects for employment in their previous industry induce displaced workers to reduce search intensity or increase reservation wages in other industries. Copyright 1993 by University of Chicago Press.
Journal of Labor Economics is edited by Derek A. Neal
More articles in Journal of Labor Economics from University of Chicago Press Address: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Series data maintained by Christopher F. Baum ().
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