Pissarides, Christopher (1992) Loss of skill during unemployment and the persistence of employment shocks. Quarterly Journal of Economics, 107 (4). pp. 1371-1392. ISSN 0033-5533
Abstract
This paper shows that when unemployed workers lose some of their skills, the effects of a temporary shock to employment can persist for a long time. The key mechanism is a thin market externality that reduces the supply of jobs when the duration of unemployment increases. The paper develops an overlapping-generations model of search equilibrium and shows that different patterns of persistence and multiple equilibria are possible even with constant returns production and matching technologies.
| Item Type: | Article |
|---|---|
| Official URL: | http://qje.oxfordjournals.org/ |
| Additional Information: | © 1992 The President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Library of Congress subject classification: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
| Journal of Economic Literature Classification System: | J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies |
| Sets: | Departments > Economics Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) |
| Date Deposited: | 27 Apr 2007 |
| URL: | http://eprints.lse.ac.uk/1145/ |
Actions (login required)
 |
Record administration - authorised staff only |
