Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?
This paper formulates and tests the hypothesis that the categories unemployed and out of the labor force are behaviorally distinct labor force states. Our empirical results indicate that they are. In the empirically relevant range the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment. This evidence is shown to be consistent with a simple job search model of productive unemployment with log concave wage offer distributions. We prove that if unemployed workers receive job offers more frequently than workers out of the labor force, and if wage offer distributions are log concave, the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment.
Year of publication: |
1982-09
|
---|---|
Authors: | Flinn, Christopher J. ; Heckman, James J. |
Institutions: | National Bureau of Economic Research (NBER) |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
New Methods for Analyzing Structural Models of Labor Force Dynamics
Heckman, James J., (1982)
-
Models for the Analysis of Labor Force Dynamics
Flinn, Christopher J., (1982)
-
Are unemployment and out of the labor force behaviorally distinct labor force states?
Flinn, Christopher J., (1983)
- More ...