Petrongolo, Barbara (1999) Re-employment probabilities and returns to matching. 2266. Centre for Economic Policy Research, London, UK.Full text not available from this repository.
The assumption of constant returns in the matching function, embodied in most bilateral search models, is crucial to ensure the uniqueness of the unemployment rate along a steady state growth path. This Paper explores whether this is an acceptable assumption by estimating individual reemployment probabilities on a sample of entrants into unemployment. This is done by applying hazard models to survey data on both completed and uncompleted unemployment durations. The hypothesis of constant returns to matching is not rejected, on the basis of the evidence that the job-finding hazard only depends on local labour market tightness and it is independent of its size.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1999 Barbara Petrongolo|
|Uncontrolled Keywords:||hazard functions, returns to matching, local labour markets.|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Journal of Economic Literature Classification System:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Actions (login required)
|Record administration - authorised staff only|