The unemployment rate captures the search behavior of job losers, as well as new entrants or reentrants to the labor force. The behavior of these unemployed groups can display significant differences. This paper extends the Shapiro-Stiglitz model to include an analysis of equilibrium job loss...

Two measures of economic activity are unemployment rates and employment-to-population ratios. Both measures provide policy-makers with information regarding local labor markets. Typically the unemployment rate has been the measure of choice. We estimate a simultaneous equations model to...