Employer-Employee Interaction and the Duration of Unemployment

John Warner, J. Carl Poindexter and Robert M. Fearn

The Quarterly Journal of Economics, 1980, vol. 94, issue 2, 211-233

Abstract: This paper identifies three alternative approaches to the duration of unemployment—the screening, the formal search theory, and the intensity of search approaches. From these approaches, a unified model of the weekly probability of leaving unemployment (WPOLU) is developed. In this model, WPOLU is the product of the weekly probability of job vacancy location, the probability of offer extension, and the probability of offer acceptance. The determinants of these probabilities are analyzed. The model is tested with data from the 1970 Census Employment Survey. Evidence supporting all three approaches is found. An eclectic view of unemployment is called for.

Date: 1980
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