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Ranking, Unemployment Duration, and Wages
Open accessAbstract
The paper examines the effects of the composition of unemployment on wage determination. It explores the implication of one central assumption: when firms receive multiple acceptable applications, they hire the worker who has been unemployed for the least amount of time. This assumption (“ranking”) is contrasted with the assumption of random hiring (“no-ranking”). By embodying this assumption in a model of the labour market with job creation/destruction and matching, the joint behaviour of unemployment, the distribution of unemployment durations, and wages are characterized. The implication that the re-employment prospects of employed workers, were they to become unemployed, are better than those of the currently unemployed appears to have been an important feature of European unemployment experience in the 1980's.
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Citations
Cited by
Looking into the Black Box: A Survey of the Matching Function
Petrongolo, B., & Pissarides, C. A. (2001) · Journal of Economic Literature · doi:10.1257/jel.39.2.390 · Cited by 2,384
The Effects of Social Networks on Employment and Inequality
Calvó-Armengol, A., & Jackson, M. O. (2004) · American Economic Review · doi:10.1257/0002828041464542 · Cited by 1,051
The Cyclical Behavior of the Gross Flows of U.S. Workers
Blanchard, O. J., Diamond, P., Hall, R. E., & Murphy, K. (1990) · Brookings Papers on Economic Activity · doi:10.2307/2534505 · Cited by 553
Self-citationIs There Less Discrimination in Occupations Where Recruitment Is Difficult?
Baert, S., Cockx, B., Gheyle, N., & Vandamme, C. (2015) · ILR Review · doi:10.1177/0019793915570873 · Cited by 243
Eckstein, A., Sevak, P., & Wright, D. (2017) · Journal of Vocational Rehabilitation · doi:10.3233/jvr-160853 · Cited by 13
Metadata
- Authors
- Blanchard, O. J., & Diamond, P.
- Venue
- The Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 1994-07-01
- Volume
- 61
- Issue
- 3
- Pages
- 417-434
- ISSN
- 0034-6527 (ISSN-L)
- 1467-937X
- OpenAlex
- W2891580286
- Cited by
- 524
- References
- 0
- FWCI
- 29.99
- Type
- journal article
- Language
- en
- Open access
- green
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- Blanchard, O. J., & Diamond, P. (1994). Ranking, Unemployment Duration, and Wages. The Review of Economic Studies. https://doi.org/10.2307/2297897
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
