The Cost of Job Loss

• 成果类型: Article
• 署名作者: Burdett, Kenneth; Carrillo-Tudela, Carlos; Coles, Melvyn
• 署名单位: University of Pennsylvania; University of Essex
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdaa014
• 发表日期: 2020
• 页码: 1757-1798
• 关键词: equilibrium search model; earnings losses; wage dispersion; labor-market; unemployment; workers; experience; insurance; TENURE; rise

摘要

This article identifies an equilibrium theory of wage formation and endogenous quit turnover in a labour market with on-the-job search, where risk averse workers accumulate human capital through learning-by-doing and lose skills while unemployed. Optimal contracting implies the wage paid increases with experience and tenure. Indirect inference using German data determines the deep parameters of the model. The estimated model not only reproduces the large and persistent fall in wages and earnings following job loss, a new structural decomposition finds foregone human capital accumulation (while unemployed) is the worker's major cost of job loss.