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Recall and Unemployment

Shigeru Fujita and Giuseppe Moscarini ()

American Economic Review, 2017, vol. 107, issue 12, 3875-3916

Abstract: We document in the Survey of Income and Program Participation covering the period 1990–2013 that a surprisingly large share of workers return to their previous employer after a jobless spell, and experience very different unemployment and employment outcomes than job switchers. The probability of recall is much less procyclical and volatile than the probability of finding a new employer. We add to a quantitative, and otherwise canonical, search-and-matching model of the labor market a recall option, which can be activated freely following aggregate and job-specific productivity shocks. Recall and search effort significantly amplify the cyclical volatility of new job-finding and separation probabilities.

JEL-codes: E24 E32 J63 J64 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.20131496
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Working Paper: Recall and Unemployment (2017) Downloads
Working Paper: Recall and Unemployment (2016) Downloads
Working Paper: Recall and unemployment (2015) Downloads
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