THE EFFECTS OF CHANGES OF THE JOB OFFER ARRIVAL RATE ON THE DURATION OF UNEMPLOYMENT

Generally, it is.acknowledged that changing the job offer arrival rate has two opposite effects on unemployment duration. For a basic job se arch model, sufficient conditions on the wage offer distribution have been derived, ensuring that one of the effects dominates. However, the se are not satisfied for the popular families of wage offer distributi ons. Here I show that the conditions can be weakened at virtually no c ost. The set of distributions satisfying the new conditions is conside rably larger than the set previously established. In particular, it in cludes all wage offer distribution families that are popular in struct ural empirical research.