Working Paper
The recall and new job search of laid-off workers: a bivariate proportional hazard model with unobserved heterogeneity
Abstract: Workers who lose their jobs can become re-employed either by being recalled to their previous employers or by finding new jobs. Workers' chances for recall should influence their job search strategies, so the rates of exit from unemployment by these two routes should be directly related. We solve a job search model to establish, in theory, a negative relationship between the recall and new job hazard rates. We look for evidence in the PSID by estimating a semi-parametric competing risks model with explicitly related hazards. We find only a small negative behavioral relationship between recall and new job hazard rates.
Keywords: Employment (Economic theory);
Access Documents
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/2003/200322/200322abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/2003/200322/200322pap.pdf
Authors
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2003
Number: 2003-22