Keywords: Lay-off, recall, job search, hazard rate, proportional hazard model, unobserved heterogeneity, duration dependence
Abstract: Workers who lose their jobs can become re-employed either by being
recalled to their previous employers or by finding new jobs.
Workers' chances for recall should influence their job search
strategies, so the rates of exit from unemployment by these two
routes should be directly related. We solve a job search model to
establish, in theory, a negative relationship between the recall
and new job hazard rates. We look for evidence
in the PSID by estimating a semi-parametric competing
risks model with explicitly related hazards. We find only a small
negative behavioral relationship between recall and new job hazard
Full paper (379 KB PDF)
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Last update: June 20, 2003