Job search and asset accumulation under borrowing constraints

• 成果类型: Article
• 署名作者: Rendon, S
• 署名单位: Instituto Tecnologico Autonomo de Mexico
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2006.00378.x
• 发表日期: 2006
• 页码: 233-263
• 关键词: optimal unemployment-insurance; black-white differences; MODEL; consumption; WEALTH; savings; CHOICE

摘要

This article examines the relationship between wealth accumulation and job search dynamics. It proposes a model in which risk-averse individuals search for jobs, save, and borrow to smooth their consumption. One motivation for accumulating wealth is to finance voluntary quits in order to search for better jobs. Using data on men from the National Longitudinal Survey (1979 cohort), I estimate the individual's dynamic decision problem. The results show that borrowing constraints are tight and reinforce the influence of wealth on job acceptance decisions, namely that more initial wealth and access to larger amounts of credit increase wages and unemployment duration.