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Title: Dynamic Labor Force Participation Decisions of Males in the Presence of Layoffs and Uncertain Job Offers
Resulting in 1 citation.
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Gonul, Fusun Feride |
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Dynamic Labor Force Participation Decisions of Males in the Presence of Layoffs and Uncertain Job Offers Journal of Human Resources 24,2 (Spring 1989): 195-220. Also: http://www.jstor.org/stable/145853 Cohort(s): NLSY79 Publisher: University of Wisconsin Press Keyword(s): Employment; Job Tenure; Labor Force Participation; Layoffs; Unemployment; Unemployment Duration; Wages; Work History This paper presents a utility maximization model of workers who make decisions to work or not over a life time. When they work they earn wage income, when they do not work they have leisure time but earn no income. The objective is to maximize the presented discounted value of utility arising from the participation decisions. In addition to duration probabilities, state dependence enters the model by the existence of a different risk while working, namely, the dismissal risk, than the one while not working, namely, the possibility of no job offers. The method used in solving and estimating this problem is to embed a dynamic programming algorithm within a maximum likelihood routine. The data are from the NLSY. Given the structural parameter estimates, experiments are performed to ascertain the impact of changes in forcing variables on unemployment and employment duration. |
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Bibliography Citation
Gonul, Fusun Feride. "Dynamic Labor Force Participation Decisions of Males in the Presence of Layoffs and Uncertain Job Offers." Journal of Human Resources 24,2 (Spring 1989): 195-220.
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