Can Skill Decay Increase Search Effort?

Olivier Charlot and Bruno Decreuse

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: We consider the search behaviour of an infinite lifetime worker whose expected matching gains are assumed to be decreasing over the spell of unemployment. The search effort is linked positively to future earnings and negatively to the worker's reservation wage. We show that this may give rise to non monotonous hazard rates.

Keywords: UNEMPLOYMENT; BEHAVIOUR; WAGES (search for similar items in EconPapers)
JEL-codes: E24 J64 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2000
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Journal Article: Can skill decay increase search effort? (2001)
Working Paper: Can skill decay increase search effort? (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aixmeq:00a07

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