A model of competition between employed, short-term and long-term unemployed job searchers

Lourens Broersma

Research output: Working paper / PreprintWorking paperProfessional

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Abstract

This paper presents a model in which not only employed job search is endogenized, but also the phenomenon that long-term unemployed may becomediscouraged and stop searching for a job. When this model is applied to Dutch flow data, we find that this discouragement particularly took place in the early 1980's. We also find that ,a mere stimulus to labour participation is not enough to solve the problem of the high long-term unemployment in TheNetherlands.
Original languageEnglish
Place of PublicationAmsterdam
PublisherFaculty of Economics and Business Administration, Vrije Universiteit Amsterdam
Publication statusPublished - 1995

Publication series

NameResearch Memorandum
No.1995-32

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