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Retraining and long-term unemployment in a model of unlearning by not doing

Coles, M and Masters, A (2000) 'Retraining and long-term unemployment in a model of unlearning by not doing.' European Economic Review, 44 (9). 1801 - 1822. ISSN 0014-2921

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Abstract

This paper develops a dynamically consistent model of search, matching and bargaining when worker skills decline while unemployed. Long-term unemployment emerges as an endogenous phenomenon. Even with constant returns to matching, multiple Pareto rankable equilibria are possible. Policies to address long-term unemployment are best directed toward prevention (e.g. vacancy creation subsidies) rather than cure (e.g. retraining subsidies). (C) 2000 Elsevier Science B.V. All rights reserved.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 04 Jan 2013 13:32
Last Modified: 17 Aug 2017 18:04
URI: http://repository.essex.ac.uk/id/eprint/4902

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