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Title

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

AuthorsColes, Melvin G.; Masters, Adrian
Issue Date2000
PublisherElsevier
CitationEuropean Economic Review 44(9): 1801-1822 (2000)
AbstractThis 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). 2000 Elsevier Science B.V. All rights reserved.
URIhttp://hdl.handle.net/10261/58246
DOI10.1016/S0014-2921(99)00005-7
Identifiersdoi: 10.1016/S0014-2921(99)00005-7
issn: 0014-2921
Appears in Collections:(IAE) Artículos
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