A model of competition between employed, short-term and long-term unemployed job searchers

Lourens Broersma
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Lourens Broersma: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 32, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: This paper presents a model in which not only employed job search is endogenized, but also the phenomenon that long-term unemployed may become discouraged and stop searching for a job. When this model is applied to Dutch flow data, we find that this discouragement particularly took place in the early 1980’s. We also find that ,a mere stimulus to labour participation is not enough to solve the problem of the high long-term unemployment in The Netherlands.

Keywords: long-term unemployment; job searching; the Netherlands (search for similar items in EconPapers)
JEL-codes: J10 J64 (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:1995-32

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