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Employer-Employee Interaction and the Duration of Unemployment

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  • John T. Warner
  • J. Carl Poindexter
  • Robert M. Fearn

Abstract

This paper identifies three alternative approaches to the duration of unemployment—the screening, the formal search theory, and the intensity of search approaches. From these approaches, a unified model of the weekly probability of leaving unemployment (WPOLU) is developed. In this model, WPOLU is the product of the weekly probability of job vacancy location, the probability of offer extension, and the probability of offer acceptance. The determinants of these probabilities are analyzed. The model is tested with data from the 1970 Census Employment Survey. Evidence supporting all three approaches is found. An eclectic view of unemployment is called for.

Suggested Citation

  • John T. Warner & J. Carl Poindexter & Robert M. Fearn, 1980. "Employer-Employee Interaction and the Duration of Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 211-233.
    • Handle: RePEc:oup:qjecon:v:94:y:1980:i:2:p:211-233.
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    File URL: http://hdl.handle.net/10.2307/1884538
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    Citations

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    Cited by:

    1. Fallick, Bruce Chelimsky, 1991. "Unemployment Insurance and the Rate of Re-employment of Displaced Workers," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 228-235, May.
    2. Feldstein, Martin & Poterba, James, 1984. "Unemployment insurance and reservation wages," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 141-167.
    3. Fallick, Bruce Chelimsky, 1993. "The Industrial Mobility of Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 302-323, April.
    4. Christensen, Björn, 2001. "The Determinants of Reservation Wages in Germany Does a Motivation Gap Exist?," Kiel Working Papers 1024, Kiel Institute for the World Economy (IfW Kiel).
    5. Li, Yang, 1996. "International migration under incomplete information: a re-migration analysis," ISU General Staff Papers 1996010108000012549, Iowa State University, Department of Economics.

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