Can Skill Decay Increase Search Effort?.

We consider the search behaviour of an infinite lifetime worker whose expected matching gains are assumed to be decreasing over the spell of unemployment. The search effort is linked positively to future earnings and negatively to the worker's reservation wage. We show that this may give rise to non monotonous hazard rates.

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Year of publication:	2000
Authors:	Charlot, O. ; Decreuse, B.
Institutions:	Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM), Aix-Marseille School of Economics (AMSE)
Subject:	UNEMPLOYMENT \| BEHAVIOUR \| WAGES

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Series:	G.R.E.Q.A.M..
Type of publication:	Book / Working Paper
Notes:	8 pages
Classification:	E24 - Employment; Unemployment; Wages ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005669449