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Limited Duration Employment

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Author Info
Eric F. Smith (University of Essex)

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Abstract

This paper analyses a matching model in which labor market participants use temporary employment as a waiting station between searches. Searchers entering the market see all available options. The best match, however, may not be particularly productive. Since all currently available traders are known, immediate search is not worthwhile. Over time, turnover replenishes the stock of potential traders and poor matches eventually find it profitable to search again. Searchers therefore take the best available match and simultaneously formulate if and when to look again. The best matches become indefinite; lower quality matches coexist as temporary employment. This duration increases with match quality and declines as matching improves. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2007.01.001
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Publisher Info
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 10 (2007)
Issue (Month): 3 (July)
Pages: 444-471
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Handle: RePEc:red:issued:06-1

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Related research
Keywords: Search and matching Employment duration Temporary jobs Job turnover

Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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This page was last updated on 2009-1-6.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.