Non-Stationary Job Search with Firing: A Structural Estimation

• J. Ignacio García-Pérez ^[1]
  1. [1] Universidad Complutense
• Localización: Documentos de Trabajo ( CEMFI ), Nº. 2 (Working Paper No. 9802, July 1998), 1998
• Idioma: inglés
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• Resumen

  • This paper modifies Van den Berg's (1990) nonstationary model of search, considering the existence of a firing probability. The presence of firing makes unemployed workers lower their reservation wage because of the entitlement effect embodied in accepting a job offer. In this nonstationary environment, reservation wages have a stronger time-dependence than without firing.