TY  - BOOK
AU  - Cheron,Arnaud
AU  - Jean-Olivier,Hairault
AU  - Langot,Francois
TI  - Life-cycle equilibrium unemployment
SN  - 0734306X
AV  - HD5706 JOU 
PY  - 2013///
CY  - Chicago
PB  - University of Chicago Press
KW  - Life cycle
KW  - Unemployment theory
KW  - Unemployment
N2  - This paper extends the job creation–job destruction approach to the labor market to take into account a deterministic finite horizon. As hirings and separations depend on the time over which investment costs can be recouped, the life-cycle setting implies age-differentiated labor-market flows. While search by the unemployed falls with age, the separation rate is rather U-shaped over the life cycle. Worker heterogeneity in the context of undirected search implies an intergenerational externality, which is not eliminated by the Hosios condition. We show that age-specific policies are required to attain the first-best allocation
UR  - https://doi.org/10.1086/669941
ER  -