Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment

@article{Borgschulte2018PayingTA,
  title={Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment},
  author={Mark Borgschulte and P. Martorell},
  journal={Econometric Modeling: Microeconometric Models of Household Behavior eJournal},
  year={2018}
}
  • Mark Borgschulte, P. Martorell
  • Published 2018
  • Economics
  • Econometric Modeling: Microeconometric Models of Household Behavior eJournal
  • This paper provides revealed-preference estimates of the monetary value of avoiding job search in a high-unemployment labor market by examining the behavior of military servicemembers deciding between reenlisting and exiting the military. We find that servicemembers would sacrifice 1.5-2% in earnings in exchange for avoiding a one percentage point increase in the home-state unemployment rate. Comparing these estimates to realized losses in post-service civilian earnings resulting from exiting… CONTINUE READING
    14 Citations

    References

    SHOWING 1-10 OF 67 REFERENCES
    The Cyclicality of the Opportunity Cost of Employment
    • 133
    • PDF
    Recessions and the Costs of Job Loss
    • 203
    • Highly Influential
    The Cyclical Behavior of Equilibrium Unemployment and Vacancies
    • 2,439
    • PDF
    Job Displacement Risk and the Cost of Business Cycles
    • 142
    • PDF
    Search and Rest Unemployment
    • 142
    • PDF
    The Consumption Smoothing Benefits of Unemployment Insurance
    • 724
    • PDF
    To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles
    • 15
    • PDF