Layoff Orders and Occupational Mobility via Unemployment

Arbeitspapier

This paper examines how a change in layoff order can affect the decomposition and the size of unemployment in an equilibrium model where workers make optimal occupational reallocation decisions. In a calibrated model, a policy that concentrates involuntary unemployment incidences to inexperienced workers decreases workers' incentives to reallocate, compared to an equilibrium where everyone faces an identical unemployment risk, leading also to a decrease in aggregate unemployment. Moreover, given that the human capital depreciation during unemployment spells is strong, this policy change increases the market output and on average does not harm inexperienced workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion paper ; No. 101

Classification and Topics

• Classification: Wirtschaft ; Cooperative Games ; Network Formation and Analysis: Theory
• Subject: Layoff order ; Occupational Mobility ; Unemployment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vahamaa, Oskari
• Event: Veröffentlichung
• (who): Aboa Centre for Economics (ACE)
• (where): Turku
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/233317
• Last update: 10.03.2025, 11:45 AM CET