Download Advances in the Theory and Measurement of Unemployment by Yoram Weiss, Gideon Fishelson PDF

By Yoram Weiss, Gideon Fishelson

ISBN-10: 1349106909

ISBN-13: 9781349106905

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A match is valuable in two ways. Before the check-up takes place, it yields the value of time it takes to find another match. After a 'successful' check-up, it has the extra value of a good realization. In both cases, therefore, the match may yield some 'cake' to be divided between the parties. Thus, a solution concept is needed in order to select an equilibrium. Now, a solution for this kind of bargaining problem may be complicated. ). In this work I separate these decisions in the following way.

Also, since 0 < I-cwo (t+ 1,1) < 1, then Eo {~ at p(t, 0) ~ [1-0vo (t+ 1, I)]} < 1, and, therefore, EVf has a well defined, unique solution. D. 1 There exist unique equilibrium values (Ev~, {v~(t, j)}~. 12) as usual. It can be seen that (Tu) maps U into itself, and that it is monotonic. 25p(t, j)a 1-0+(0/2)a b I + -1 p(t,j)b + [l-p(t,j)]b r 2 ~(Tu)+Or where the inequality follows from the fact that a/2 -----~1. 1-0+(0/2)a Indeed, this expression is increasing in 0, and at 0 = 1 it equals 1. Therefore, Tu is a contraction mapping in the sum norm, and Vo (t, j) has a unique solution for every (t, j) NxN.

Stern (1989) has empirically shown that this type of search is more prevalent than search for high offers. The existence of competition among workers for a limited number of job openings leads to an inefficiently high amount of search. Nevertheless, an unemployment compensation programme set up in the proper way can induce each worker to choose the socially optimal search intensity. Many authors have discussed the effects of unemployment insurance on the behaviour of workers looking for a job. Theoretical papers include Mortensen (1977) and Lippman and McCall (1979).

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