Duration Dependence, Endogenous Search and Structural Analysis of Labor Market Histories

Author(s):  
Mark Yuying An
2015 ◽  
Vol 15 (2) ◽  
pp. 621-651 ◽  
Author(s):  
Chiara Mussida ◽  
Dario Sciulli

Abstract We analyze the effects of Italian labor market reforms “at the margin” on the probability of exiting from non-employment and entering permanent and temporary contracts, using WHIP data for the period 1985–2004. We find that the reforms have strengthened the duration dependence parameter, meaning a stronger labor market gap in employment opportunities between the short- and long-term non-employed. We suggest that in a flexible labor market, long-term unemployment is used by firms as a screening device to detect less productive workers. We also find evidence of greater differences in employment opportunities according to gender, and of reduced differences between regional labor markets.


2004 ◽  
Vol 94 (3) ◽  
pp. 426-454 ◽  
Author(s):  
Antoni Calvó-Armengol ◽  
Matthew O Jackson

We develop a model where agents obtain information about job opportunities through an explicitly modeled network of social contacts. We show that employment is positively correlated across time and agents. Moreover, unemployment exhibits duration dependence: the probability of obtaining a job decreases in the length of time that an agent has been unemployed. Finally, we examine inequality between two groups. If staying in the labor market is costly and one group starts with a worse employment status, then that group's drop-out rate will be higher and their employment prospects will be persistently below that of the other group.


2013 ◽  
Vol 128 (3) ◽  
pp. 1123-1167 ◽  
Author(s):  
Kory Kroft ◽  
Fabian Lange ◽  
Matthew J. Notowidigdo

Abstract This article studies the role of employer behavior in generating “negative duration dependence”—the adverse effect of a longer unemployment spell—by sending fictitious résumés to real job postings in 100 U.S. cities. Our results indicate that the likelihood of receiving a callback for an interview significantly decreases with the length of a worker’s unemployment spell, with the majority of this decline occurring during the first eight months. We explore how this effect varies with local labor market conditions and find that duration dependence is stronger when the local labor market is tighter. This result is consistent with the prediction of a broad class of screening models in which employers use the unemployment spell length as a signal of unobserved productivity and recognize that this signal is less informative in weak labor markets.


2021 ◽  
Vol 30 (4) ◽  
pp. 123-140
Author(s):  
Monika Davidová ◽  
Vladan Holcner ◽  
Libor Jílek ◽  
Alojz Flachbart

The paper analyses differences in remuneration of professional soldiers in the Czech Republic and the Slovak Republic between 1999 and 2020. This structural analysis focuses on changes in respective remuneration systems and their design. Results of the presented research enable to identify differences in the development of remuneration of professional soldiers after the split of the Czechoslovak Federation in 1993. The paper submits development of the amounts of salary for selected military ranks, their comparison and relation to general trends in domestic labor market and relation to average costs of living in respective countries. Between 2016 and 2019, salaries of professional soldiers grew higher in the Czech Republic than in the Slovak Republic, in 2020, the pay gap is already narrowing.


Labour ◽  
2021 ◽  
Vol 35 (1) ◽  
pp. 105-134
Author(s):  
Arne F. Lyshol ◽  
Plamen T. Nenov ◽  
Thea Wevelstad

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