Non-Stationary Job Search with Firing: A Structural Estimation

J. Ignacio García-Pérez
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

Working Papers from CEMFI

Abstract: This paper modifies Van den Berg's (1990) nonstationary model of search, considering the existence of a firing probability. The presence of firing makes unemployed workers lower their reservation wage because of the entitlement effect embodied in accepting a job offer. In this nonstationary environment, reservation wages have a stronger time-dependence than without firing.

Date: 1998
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Working Paper: Non-Stationary Job Search with Firing: a Structural Estimation (1998)
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