Work Histories and Lifetime Unemployment

Author(s)
Iacopo Morchio
Abstract

A long-standing question in economics is how important unobserved differences across workers are for explaining unemployment. I revisit this topic using variation in lifetime unemployment across workers in US data. A comparison of workers often unemployed with the rest shows that, while differences in job-finding rates increase over the course of a career, differences in job-separation rates are large right from the start. I develop a directed search model with symmetric unobserved heterogeneity, in which agents learn workers' types from their labor market histories, to rationalize these findings. The model cannot match the data if unobserved
heterogeneity is neglected.

Organisation(s)
Department of Economics
Journal
International Economic Review
ISSN
0020-6598
DOI
https://doi.org/10.1111/iere.12425
Publication date
2020
Peer reviewed
Yes
Austrian Fields of Science 2012
Labour economics, Macroeconomics
Keywords
ASJC Scopus subject areas
Portal url
https://ucris.univie.ac.at/portal/en/publications/work-histories-and-lifetime-unemployment(66739aeb-1f12-40cb-b79e-7ff9d14e27b3).html