The Diverging Effects of the Business Cycle on the Expected Duration of Job-Search

C. N. Teulings ()

Oxford Economic Papers, 1993, vol. 45, issue 3, 482-500

Abstract: Where rigid wages prevent labor-market clearing, employers become more choosy and job-seekers accept lower-ranked jobs in cyclical downturns. Thus, the duration of job-search of highly-qualified job-seekers should be less cyclically sensitive than for low-skilled job-seekers and, controlling for personal characteristics, job-seekers will find lower-ranked jobs during the downturn. These predictions are tested for the Netherlands, 1982-85. Individual transition rates from job-search to employment are estimated. Employment is classified by occupation to distinguish job ranks. Transition rates by occupation are estimated. Copyright 1993 by Royal Economic Society.

Date: 1993
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Working Paper: The Diverging Effects of the Business Cycle on the Expected Duration of Job Research (1991)
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