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Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?
Open accessAbstract
This paper formulates and tests the hypothesis that the categories unemployed and out of the labor force are behaviorally distinct labor force states.Our empirical results indicate that they are.In the empirically relevant range the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment.This evidence is shown to be consistent with a simple job search model of productive unemployment with log concave wage offer distributions.We prove that if unemployed workers receive job offers more frequently than workers out of the labor force, and if wage offer distributions are log concave, the exit rate from unemployment to employment exceeds the exit rate from out of the labor force to employment.
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Citations
Cited by
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
Shimer, R. (2005) · American Economic Review · doi:10.1257/0002828053828572 · Cited by 2,731
Why Are the Unemployed So Unhappy?Evidence from Panel Data
Winkelmann, L., & Winkelmann, R. (1998) · Economica · doi:10.1111/1468-0335.00111 · Cited by 1,725
Search-Theoretic Models of the Labor Market: A Survey
Rogerson, R., Shimer, R., & Wright, R. (2005) · Journal of Economic Literature · doi:10.1257/002205105775362014 · Cited by 1,051
Log-concave probability and its applications
Bagnoli, M., & Bergstrom, T. (2006) · Studies in Economic Theory · doi:10.1007/3-540-29578-x_11 · Cited by 963
Heckman, J. J., & Walker, J. R. (1990) · Econometrica · doi:10.2307/2938322 · Cited by 423
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Metadata
- Authors
- Flinn, C., & Heckman, J.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1982-09
- OpenAlex
- W3122961410
- Cited by
- 262
- References
- 0
- Type
- report
- Language
- en
- Open access
- green
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- CoChat. (2026). Citation check: Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States? https://app.cochat.ai/papers/10.3386/w0979
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- Flinn, C., & Heckman, J. (1982). Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States? National Bureau of Economic Research. https://doi.org/10.3386/w0979
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