Abstract
A considerable body of recent labour economics literature has examined the relative impact of unemployment duration. Attention has primarily focused on the effects on (re-)entry into employment. An important finding is that the prolongation of the spell of unemployment leads to a deterioration of the (re-)entry probability.1 Another strand of research analyses differences in personal and regional labour market characteristics of individuals with different spells of unemployment. It has been found that different spells of unemployment are primarily attributable to differences in personal characteristics and not to regional labour market features.2 A third strand of research focuses on the trade-off between voluntary prolongation of job search and wage offers. Given optimal search activity, an unemployed person will continue searching until he receives a job offer of which the corresponding wage exceeds his reservation wage.3
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van Dijk, J., Folmer, H. (1992). The impact of personal and regional unemployment on individual wages in The Netherlands. In: Verhaar, C.H.A., Jansma, LG., de Goede, M.P.M., van Ophem, J.A.C., de Vries, A. (eds) On the Mysteries of Unemployment. Studies in Operational Regional Science, vol 10. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8080-9_9
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DOI: https://doi.org/10.1007/978-94-015-8080-9_9
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