Download this Paper Open PDF in Browser

Waiting for Work

42 Pages Posted: 4 Jul 2004  

George A. Akerlof

University of California, Berkeley; National Bureau of Economic Research (NBER)

Andrew Kenan Rose

University of California - Haas School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Janet L. Yellen

University of California, Berkeley - Economic Analysis & Policy Group

Date Written: June 1990

Abstract

This paper explains upward job mobility and observed patterns of unemployment by skill as an economy recovers from a recession. Skilled unemployment is due to rational waiting by workers looking for long-term jobs when there is a "lock-in" effect. Lock-in occurs if the conditions in the labor market when a worker first accepts a job have a persistent effect on wages. Using longitudinal data, we provide empirical evidence of the cyclical pattern of wages predicted by the theory and also of lock-in.

Suggested Citation

Akerlof, George A. and Rose, Andrew Kenan and Yellen, Janet L., Waiting for Work (June 1990). NBER Working Paper No. w3385. Available at SSRN: https://ssrn.com/abstract=306401

George A. Akerlof (Contact Author)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of California, Berkeley ( email )

Department of Economics 549 Evans Hall #3880
Berkeley, CA 94720
United States
510-642-0822 (Phone)

Andrew Kenan Rose

University of California - Haas School of Business ( email )

Berkeley, CA 94720
United States
510-642-6609 (Phone)
510-642-4700 (Fax)

HOME PAGE: http://faculty.haas.berkeley.edu/arose

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Janet L. Yellen

University of California, Berkeley - Economic Analysis & Policy Group ( email )

Berkeley, CA 94720
United States
510.643.1397 (Phone)
510.643.1420 (Fax)

Paper statistics

Downloads
69
Rank
284,187
Abstract Views
1,473