THE DIVERGING EFFECTS OF THE BUSINESS-CYCLE ON THE EXPECTED DURATION OF JOB-SEARCH

Where rigid wages prevent labour-market clearing, employers become mor e choosy and job-seekers accept lower-ranked jobs in cyclical downturn s. Thus the duration of job-search of highly-qualified job-seekers sho uld be less cyclically sensitive than for low-skilled job-seekers and, controlling for personal characteristics, job-seekers will find lower -ranked jobs during the downturn. These predictions are tested for the Netherlands 1981-5. Individual transition rates from job-search to em ployment are estimated. Employment is classified by occupation to job Transition rates by occupation are estimated.