Year: 1982
Type: report
Study design: Observational Study
Abstract: 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.
DOI: 10.3386/w0979
Authors: Christopher Flinn, James Heckman
Institutions: University of Wisconsin–Madison, University of Chicago
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3122961410