an empirical model of job to job transition with self selectivity the statistical relationship between accepted job duration and the job to job transition strategy chosen by job quitters is analyzed using parametric duration methods because job quitters can sort themselves between unemployed and employed search the labor market state occupied before acceptance of a new job must contain information about the search preferred strategy the results show that jobs preceded by unemployment tend to be shorter but also reveal a substantial amount of heterogeneity when the sample is split between those having comparative advantages in unemployed search and those with comparative advantages in employed search however even for those who have comparative advantages in unemployed search choosing unemployment does not seem to raise subsequent job duration

search unemployment and the production of jobs the authors investigate the performance of the economy when search is required to find employment and when the duration of unemployment varies across sectors they assume that in one sector factor markets are frictionless while in the other se ctor idle factors of production must actively search each other out i n order to produce they focus on how well the economy allocates work ers across sectors and the conditions under which the factor mix with in a sector is correct the authors demonstrate that in equilibrium t he search sector is too small and its factor intensity is too asymmet ric copyright 1987 by royal economic society

efficiency and sharing of investment in specific human capital under risk aversion abstract this paper analyses the investment behavior of a risk averse worker who searches for other jobs in a two period model it will be shown that given an appropriate investment technology the worker will invest in specific human capital efficiently if his investment costs and return can be shared with some parties the presence of sharing allows the worker to invest efficiently without being affected by his risk aversion since he can adjust his share of the investment in a way compatible with his attitude towards risk

labor market flows in the cross section and over time many theoretical models of labor market search imply a tight link between worker flows hires and separations and job gains and losses at the employer level we use rich establishment level data to assess several theoretical models and to study the relationship between worker flows and jobs flows hires quits and layoffs exhibit strong highly nonlinear relationships to employer growth rates in the cross section simple statistical models of these relationships greatly improve our ability to account for fluctuations in aggregate worker flows and enable us to construct synthetic measures of hires separations quits and layoffs back to 1990

are unemployment and out of the labor force behaviorally distinct labor force states this paper tests the hypothesis that the classifications unemployed and out of the labor force are behaviorally meaningless distinctions this hypothesis is rejected distinct behavioral equations govern transitions from out of the labor force to employment and from unemployment to employment the evidence reported in this paper is broadly consistent with versions of search theory in which unemployment is a state that facilitates the job search process in an appendix we demonstrate that log concavity of the wage offer distribution implies that the exit rate from unemployment is an increasing function of the rate of arrival of job offers

food security policy options for china lessons from other countries the authors gratefully acknowledge financial support from the world bank and australia s rural industries research and development corporation

hiring molecules not atoms comobility and wages what role do social connections play in the labor market a vast influential literature has detailed the ways in which ties facilitate the flow of information about job opportunities to workers as well as endorsements or referrals of workers to firms we propose that this role is not constrained to an informational one alone rather relationships between workers can enable a collective job matching process that facilitates the transfer of shared human capital from one organization to another yet comobility has been studied only occasionally and among elite workers in particular industries this study delivers both fieldwork as well as large sample analysis among all nongovernmental workers in denmark finding a 5 5 wage premium for those who move jointly instead of independently both in the full sample as well as when applying strict matching or fixed effects for workers or firms co movers whose skills are related but not identical capture a higher premium and the wage gains associated with comob

mind the gap please the changing nature of entry jobs in britain we examine wages in jobs taken by those out of work entry jobs and the characteristics of the individuals who fill them there are large entry wage gaps relative to other jobs more importantly real entry wages have fallen by around 20 log points relative to all other jobs since 1979 one quarter of this decline is accounted for by differences in individual and job characteristics and around 40 from an unexplained fall in the position of entry jobs in the wage distribution that entry wages differ from the stock of all wages should be incorporated into labour supply modelling

employer search training and vacancy duration we develop a model of optimal employer search strategy when information about match quality is endogenous the model is tested using four data sets two of which have not previously been used as theory predicts we find that when filling positions requiring more training employers search more intensively and extensively employers also search more extensively when hiring workers with more education and with prior experience these findings provide strong evidence of systematic variation in search strategies based on the characteristics of the positions and job applicants factors that influence employer search also affect the duration of a vacancy

unemployment dynamics across oecd countries abstract the european community and the us have experienced vastly different unemployment dynamics over the last two decades this paper investigates whether these differences are due to exposure to different shocks or reacting differently to the same shocks with the premise of a search theoretic framework and a structural var methodology the paper robustly identifies aggregate versus reallocative shocks with the exception of spain where most of the dynamics seem to be driven by reallocation it is found that most differences in unemployment dynamics arise because of differences in responses to shocks in particular the us labour market is quicker to adjust than the european community this implies that eec economies might be dynamically sclerotic even if the size of the steady state labour market flows give the impression that european labour markets are quite active various identifying assumptions additional labour supply shocks and different variables are used yet the results appear robust

the impact of education expansion on wage inequality abstarctthe findings on education expansion and income inequality have important implications for policymakers to implement effective policies to reduce income inequality this study attempts to explain how education expansion affects income inequality by education distribution and the rate of return to education we decompose the effect of education expansion on wage gaps into price effect and structure effect we compare the income inequality from 2002 to 2013 using the chinese household income project chip 2002 and chip2013 survey data and employ ffl decomposition method our findings suggest that income inequality increased in 2013 and that income inequality among the high income groups increased even more significantly the structure effect of education expansion on income inequality is negative when average education increases one year the income gap between 80th and 20th will decrease 1 2 in other words education expansion decreases income inequality by allowing a wide range of individuals t

asymmetric labor market reforms effects on wage growth and conversion probability of fixed term contracts the authors investigate the impact of a change in employment protection laws in portugal that increased the maximum legal duration of fixed term contracts they find that this reform led to a reduction in the probability that a worker on a fixed term contract would be converted to a permanent contract in addition those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force consequently the implementation of this law led to a 27 increase in the wage growth differential between the two contracts the findings are based on an endogenous regime switching model using rich administrative linked employer employee data

sorting through search and matching models in economics toward understanding assortative matching this is a self contained introduction to research on search and matching we first explore the nontransferable and perfectly transferable utility matching paradigms and then a unifying imperfectly transferable utility matching model motivated by some unrealistic predictions of frictionless matching we flesh out the foundational economics of search theory we then revisit the original matching paradigms with search frictions we finally allow informational frictions that often arise such as in college student sorting

on the job search mismatch and efficiency this paper characterizes the equilibrium for a large class of search models with two sided heterogeneity and on the job search besides the well known congestion externalities we show that on the job search in combination with monopsonistic wage setting without commitment creates a business stealing externality in the absence of congestion effects this leads to excessive vacancy creation under wage setting with commitment this externality is absent because when posting a wage firms take into account the expected productivity of future workers in their current jobs if firms are able to make and respond to counteroffers then they will not have to pay no quit premia and this also leads to excessive vacancy creation

efficient learning and job turnover in the labor market this article nests a continuous time learning model a la jovanovic journal of political economy 92 1984 108 22 into a directed on the job search framework we prove that the socially efficient allocation is separable that is the workers value functions and optimal controls are independent of both the distribution of workers across their current match qualities and the unemployment rate we characterize the dynamics of job transitions in the efficient allocation furthermore when the matching technology is linear our numerical results show that increasing the vacancy creation cost and the speed of learning have ambiguous effects on the unemployment rate and aggregate job transition

on the existence and uniqueness of value functions in models of labor market dynamics abstract this note provides blackwell like sufficient conditions which can be used to prove the existence and uniqueness of value functions in recently developed models of labor market dynamics

matching turnover and unemployment this paper develops the view that workers move into and out of the labor market because of changes in the perceived value of their market opportunities a search model is combined with a matching model to yield movement of workers from job to job and into and out of employment

is beta t egarch 1 1 superior to garch 1 1 statistical performance in sample point forecast precision and out of sample density forecast precision of garch 1 1 and beta t egarch 1 1 models are compared we study the volatility of nine gl

comment on the u s structural transformation and regional convergence a reinterpretation in an otherwise interesting and informative article caselli and coleman 2001 make a claim to foresight and originality that is wholly unjustified the first contribution of this paper is to present a model featuring a third ingredient that seems essential to matching all four of the key facts of the structural transformation our new explanation includes a downward shift in the farm labor supply curve so that the decline in farm employment is consistent with an increase in farm wages p 586 they also add that we show in this paper however that by attributing the decline in farm output and employment to falling demands the traditional explanations also predict falling relative prices for farm goods and falling relative wages to farm workers in other words they fail completely with respect to the less well known behavior of the prices in rows 3 and 4 of table 1 p 586 there are several things wrong with these statements first they did not discover that a decline in farm employment may result in an increase in farm wages both absolute and relative to nonfarm wages second it is not always true that a decline in farm employment leads to a narrowing of the gap between farm and nonfarm labor returns and third if farm productivity growth is greater than in the rest of the economy the relative prices of farm products can and should decline in fact in their table 1 the relative prices of farm products in 1980 were 24 percent lower than for the average of 1880 1900 and 1920 had they carried their data on through 1997 they would have found that relative farm prices fell much farther by 34 percent from the 1980 level as one would expect if total factor

labor search and matching in macroeconomics abstract the labor search and matching model plays a growing role in macroeconomic analysis this paper provides a critical selective survey of the literature four fundamental questions are explored how are unemployment job vacancies and employment determined as equilibrium phenomena what determines worker flows and transition rates from one labor market state to another how are wages determined what role do labor market dynamics play in explaining business cycles and growth the survey describes the basic model reviews its theoretical extensions and discusses its empirical applications in macroeconomics the model has been developed against the background of difficulties with the use of the neo classical frictionless model of the labor market in macroeconomics its success includes the modelling of labor market outcomes as equilibrium phenomena the reasonable fit of the data and when inserted into business cycle models improved performance of more general macroeconomic models at the same time there is evidence against the nash solution used for wage setting and an active debate as to the ability of the model to account for some of the cyclical facts

young workers and quit behaviour a model is set up to explain the quit behaviour of new entrants to the labour market it uses an incentive opportunity approach to integrate existing relevant arguments from search and information theory and human capital analysis it also provides for impetuous quits the model is tested by an examination of a disaggregated data set concerning a single cohort of 16 year old school leavers in the first year after gaining full time work the theory received strong support for example in the main model seven out of the ten coefficients were highly significant interestingly even in a time of deepening recession the existence of the job shopper seemed to be apparent

sectoral shifts labor market sorting and aggregate fluctuations a model of sectoral reallocation is constructed where intersectoral friction is not caused by search or mobility costs instead a sectoral disturbance has a negative effect on production possibilities because it reduces the value of previous sorting in the labor market in equilibrium a measure of sectoral dispersion is positively correlated with the unemployment rate an increase in the incidence of sectoral disturbances increases unemployment at cyclical peaks and at cyclical troughs copyright 1990 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

moving off the farm land institutions to facilitate structural transformation and agricultural productivity growth in china agriculture has made major contributions to china s economic growth and poverty reduction but the literature has rarely focused on the institutional factors that might underpin such structural transformation and productivity this paper aims to fill that gap drawing on an 8 year panel of 1 200 households in six key provinces it explores the impact of government land reallocations and formal land use certificates on agricultural productivity growth as well as the likelihood of households to exit from agriculture or send family members to the non farm sector it finds that land tenure insecurity measured by the history of past land reallocations discourages households from quitting agriculture the recognition of land rights through formal certificates encourages the temporary migration of rural labor both factors have a large impact on productivity at about 30 percent each mainly by encouraging market based land transfers a sustained increase in non agricultural opportunities will likely reinforce the importance of secure land tenure which is a precondition for successful structural transformation and continued economic attractiveness of rural areas