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On-the-Job Search and the Unemployment Outflow Rate Series. Theoretical Results

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Abstract

In a matching model of the labour market in which employers and job seekers have to engage in a costly serach process to create a match, we show that on-the-job search ceteris paribus reduces the unemployment outflow rate. We derive this result for two alternative assumptions as to the relative search effectiveness of on-the-job searchers aare perfectly substituable and second, that employers rank employed above unemplyed applicants.

Suggested Citation

  • Fuentes, A., 1998. "On-the-Job Search and the Unemployment Outflow Rate Series. Theoretical Results," Economics Series Working Papers 99199, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:99199
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    Keywords

    UNEMPLOYMENT;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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