THE INDUSTRIAL MOBILITY OF DISPLACED WORKERS

This article uses a two-industry model of unemployment duration and jo b search to estimate rates of transition of displaced workers from une mployment to employment, distinguishing between employment in a worker 's previous industry and in other industries. The competing-risks mode l allows inferences about search strategies to be drawn from data conc erning employment outcomes and allows tests of some fundamental implic ations of search theory. There is evidence that improvements in the pr ospects for employment in their previous industry induce displaced wor kers to reduce search intensity or increase reservation wages in other industries.