Life-cycle equilibrium unemployment/ created by Arnaud Chéron, Jean-Olivier Hairault and François Langot
Material type:
- text
- unmediated
- volume
- 0734306X
- HD5706 JOU
Item type | Current library | Call number | Vol info | Copy number | Status | Notes | Date due | Barcode | |
---|---|---|---|---|---|---|---|---|---|
![]() |
Main Library - Special Collections | HD5706 JOU (Browse shelf(Opens below)) | Vol. 31, no.4 (pages 843-882) | SP17577 | Not for loan | For in-house use only |
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.
There are no comments on this title.