This paper considers a job search model where the environment is not constant throughout the unemployment spell and where jobs do not last forever. In this situation, reservation wages can be lower than they would be in a model without consideration of such separations, but also they can...

This paper considers the estimation of discrete time duration models. We highlight the enhance identification opportunities embedded in multiple spell data to separately identify the effect of duration dependence and individual time invariant unobserved heterogeneity.