Recall and Unemployment

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 12
Pages: 3875-3916

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We document in the Survey of Income and Program Participation covering the period 1990–2013 that a surprisingly large share of workers return to their previous employer after a jobless spell, and experience very different unemployment and employment outcomes than job switchers. The probability of recall is much less procyclical and volatile than the probability of finding a new employer. We add to a quantitative, and otherwise canonical, search-and-matching model of the labor market a recall option, which can be activated freely following aggregate and job-specific productivity shocks. Recall and search effort significantly amplify the cyclical volatility of new job-finding and separation probabilities.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:12:p:3875-3916
Journal Field
General
Author Count
2
Added to Database
2026-01-25