This paper presents a model in which not only employed job search is endogenized, but also the phenomenon that long-term unemployed may becomediscouraged and stop searching for a job. When this model is applied to Dutch flow data, we find that this discouragement particularly took place in the early 1980's. We also find that ,a mere stimulus to labour participation is not enough to solve the problem of the high long-term unemployment in TheNetherlands.
|Place of Publication||Amsterdam|
|Publisher||Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam|
|Publication status||Published - 1995|
Broersma, L. (1995). A model of competition between employed, short-term and long-term unemployed job searchers. (Research Memorandum; No. 1995-32). Amsterdam: Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam.