Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82182 
Year of Publication: 
2000
Series/Report no.: 
Working Paper No. 2000:8
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
Abstract: 
We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that ranking of job applicants by employment status affects both the level and the persistence of unemployment and numerically that these effects may be substantial. More prevalent ranking in Europe compared to the US (because of more rigid wage structures etc.) could potentially help to explain the high and persistent unemployment in Europe.
Subjects: 
Efficiency wage
Turnover
On-the-job search
Labor mobility
Persistence
Ranking
Unemployment
JEL: 
E24
J64
Document Type: 
Working Paper

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