Layoff Orders and Occupational Mobility via Unemployment

Oskari Vahamaa
Additional contact information
Oskari Vahamaa: Department of Economics, University of Turku

No 101, Discussion Papers from Aboa Centre for Economics

Abstract: This paper examines how a change in layoff order can affect the decomposition and the size of unemployment in an equilibrium model where workers make optimal occupational reallocation decisions. In a calibrated model, a policy that concentrates involuntary unemployment incidences to inexperienced workers decreases workers’ incentives to reallocate, compared to an equilibrium where everyone faces an identical unemployment risk, leading also to a decrease in aggregate unemployment. Moreover, given that the human capital depreciation during unemployment spells is strong, this policy change increases the market output and on average does not harm inexperienced workers.

Keywords: Layoff order; Occupational Mobility; Unemployment (search for similar items in EconPapers)
JEL-codes: C71 D85 (search for similar items in EconPapers)
Pages: 31
Date: 2015-09
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ace-economics.fi/kuvat/dp101.pdf (application/pdf)

Related works:
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:tkk:dpaper:dp101

Access Statistics for this paper

More papers in Discussion Papers from Aboa Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by Susmita Baulia ().