Coles, Melvyn and Masters, Adrian (2000) Retraining and long-term unemployment in a model of unlearning by not doing. European Economic Review, 44 (9). pp. 1801-1822. DOI https://doi.org/10.1016/s0014-2921(99)00005-7
Coles, Melvyn and Masters, Adrian (2000) Retraining and long-term unemployment in a model of unlearning by not doing. European Economic Review, 44 (9). pp. 1801-1822. DOI https://doi.org/10.1016/s0014-2921(99)00005-7
Coles, Melvyn and Masters, Adrian (2000) Retraining and long-term unemployment in a model of unlearning by not doing. European Economic Review, 44 (9). pp. 1801-1822. DOI https://doi.org/10.1016/s0014-2921(99)00005-7
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 Faculty of Social Sciences > Economics, Department of |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 04 Jan 2013 13:32 |
| Last Modified: | 23 Oct 2024 04:56 |
| URI: | http://repository.essex.ac.uk/id/eprint/4902 |