Koskela, Erkki (contributor); König, Jan (contributor) - 2008
) and
for the unemployed worker (4b)
egLwv S W , (4a)
bv … , (4b)
where S captures the firm’s profit and b stands for the unemployed worker’s
exogenous outside option.
Utility ….g.
Nickell and Layard (1999), pp. 3048 3050 and Layard et al. (2005), p. 100 101). The
probability of being unemployed is …