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Search, unemployment, and age

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  • Hahn, Volker

Abstract

We examine a search and matching model of the labor market with overlapping generations of workers. In this model, we focus on the effects of the finite lifetime of workers. As a result of finite lifetime very old workers with the same productivity as younger workers generally earn less. A market solution with Nash-bargained wages is never optimal as old workers search too long compared to the efficient solution. We also examine the effects of policy measures such as hiring subsidies or unemployment insurance on employment. Labor market institutions have a differential impact for different age groups.

Suggested Citation

  • Hahn, Volker, 2009. "Search, unemployment, and age," Journal of Economic Dynamics and Control, Elsevier, vol. 33(6), pages 1361-1378, June.
    • Handle: RePEc:eee:dyncon:v:33:y:2009:i:6:p:1361-1378
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    Cited by:

    1. Dai, Tiantian & Fan, Hua & Liu, Xiangbo & Ma, Chao, 2022. "Delayed retirement policy and unemployment rates," Journal of Macroeconomics, Elsevier, vol. 71(C).
    2. Marotzke, Petra, 2013. "Job Search and the Age-Inequality Profile," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80007, Verein für Socialpolitik / German Economic Association.
    3. Fujimoto, Junichi, 2013. "A note on the life-cycle search and matching model with segmented labor markets," Economics Letters, Elsevier, vol. 121(1), pages 48-52.
    4. Esteban-Pretel, Julen & Fujimoto, Junichi, 2012. "Life-cycle search, match quality and Japan’s labor market," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 326-350.

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    Keywords

    Search Matching Unemployment Age;

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