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The Discourage Worker Effect: A Reappraisal Using Spell Duration Data

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Working Paper Number SEHSD-WP1988-07 or SIPP-WP-57

Evidence accumulated over the last two decades has shown the dynamic character of the U.S. labor market, where large flows of individuals move each month between employment, unemployment and non-participation (Marston, 1976).

The purpose of this paper is to formulate and estimate a microdynamic reduced form model for the transition between unemployment and non-participation (hereafter UO transition).

Page Last Revised - October 8, 2021
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