Recessions, expectations, and labor supply dynamics

Recessions, expectations, and labor supply dynamics We examine how expectations on macroeconomic evolutions affect as many as twelve different labor market status transitions in bad economic times. Such a refined analysis of job search frequencies highlights intriguing findings. In bad economic times, e.g. to make up for the loss in family income, not-working agents would like to work. On the other hand, individuals are somewhat discouraged by the deteriorated expectations and they exert only a limited search effort. This latter turns out to be insufficient to find work in poor labor markets. All in all, the evidence pins down the widespread presence of “timid” responses, depicting a hybrid picture that hardly can be related to one single theoretical approach. Specifically, our findings suggest refining the standard dichotomic setting behind the discouraged worker and added worker literature. Results are based on a battery of multinomial logit models and controlled for several individual-level and aggregate variables. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Quality & Quantity Springer Journals

Recessions, expectations, and labor supply dynamics

Loading next page...
 
/lp/springer_journal/recessions-expectations-and-labor-supply-dynamics-MmDjlK0QQh
Publisher
Springer Netherlands
Copyright
Copyright © 2015 by Springer Science+Business Media Dordrecht
Subject
Social Sciences; Methodology of the Social Sciences; Social Sciences, general
ISSN
0033-5177
eISSN
1573-7845
D.O.I.
10.1007/s11135-015-0169-1
Publisher site
See Article on Publisher Site

Abstract

We examine how expectations on macroeconomic evolutions affect as many as twelve different labor market status transitions in bad economic times. Such a refined analysis of job search frequencies highlights intriguing findings. In bad economic times, e.g. to make up for the loss in family income, not-working agents would like to work. On the other hand, individuals are somewhat discouraged by the deteriorated expectations and they exert only a limited search effort. This latter turns out to be insufficient to find work in poor labor markets. All in all, the evidence pins down the widespread presence of “timid” responses, depicting a hybrid picture that hardly can be related to one single theoretical approach. Specifically, our findings suggest refining the standard dichotomic setting behind the discouraged worker and added worker literature. Results are based on a battery of multinomial logit models and controlled for several individual-level and aggregate variables.

Journal

Quality & QuantitySpringer Journals

Published: Feb 10, 2015

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off