Author : Mr.Pietro Garibaldi
Publisher : International Monetary Fund
ISBN 13 : 1451854145
Total Pages : 43 pages
Book Rating : 4.4/5 (518 download)
Book Synopsis Search Unemployment with Advance Notice by : Mr.Pietro Garibaldi
Download or read book Search Unemployment with Advance Notice written by Mr.Pietro Garibaldi and published by International Monetary Fund. This book was released on 1998-08-01 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes and solves a search model in which job separation requires mandatory notice. When jobs are subject to idiosyncratic uncertainty, firms would issue advance notice even with good business conditions. We show that such precautionary policy is not pursued if it entails sufficiently high productivity losses. If workers can search on the job, an increase in advance notice increases job to job movements, reduces unemployment flows, and has ambiguous effects on unemployment. Results are consistent with the fact that North American and European labor markets, despite their differences in job security provisions, experience similar turnover rates and dissimilar unemployment flows.