Life-Cycle Equilibrium Unemployment

Arnaud Cheron, Jean-Olivier Hairault and Francois Langot

Journal of Labor Economics, 2013, vol. 31, issue 4, 843 - 882

Abstract: This paper extends the job creation-job destruction approach to the labor market to take into account a deterministic finite horizon. As hirings and separations depend on the time over which investment costs can be recouped, the life-cycle setting implies age-differentiated labor-market flows. While search by the unemployed falls with age, the separation rate is rather U-shaped over the life cycle. Worker heterogeneity in the context of undirected search implies an intergenerational externality, which is not eliminated by the Hosios condition. We show that age-specific policies are required to attain the first-best allocation.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://dx.doi.org/10.1086/669941 (application/pdf)
http://dx.doi.org/10.1086/669941 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Life Cycle Equilibrium Unemployment (2013)
Working Paper: Life Cycle Equilibrium Unemployment (2013)
Working Paper: Life Cycle Equilibrium Unemployment (2011)
Working Paper: Life-Cycle Equilibrium Unemployment (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:doi:10.1086/669941

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().