SAVINGS AND LABOR-MARKET TRANSITIONS

Authors
BLUNDELL R MAGNAC T MEGHIR C
Citation
R. Blundell et al., SAVINGS AND LABOR-MARKET TRANSITIONS, Journal of business & economic statistics, 15(2), 1997, pp. 153-164
Citations number
15
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics
Journal title
Journal of business & economic statistics → ACNP
ISSN journal
07350015
Volume
15
Issue
2
Year of publication
1997
Pages
153 - 164
Database
ISI
SICI code
0735-0015(1997)15:2<153:SALT>2.0.ZU;2-O
Abstract
A model is developed that allows for a layoff rate and a job-arrival r ate in the intertemporal choice of consumption and labor-market state. The identification of such a model is established without recourse to dynamic programming solutions, and the minimum data requirements for estimation are derived. Unobserved heterogeneity is included in the mo del specification, but state dependence is only allowed through the la yoff and arrival rates. These are restricted to be functions of observ able weakly exogenous variables.