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Labour market signalling and unemployment duration: An empirical analysis using employer–employee data

Author

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  • Frederiksen, Anders
  • Ibsen, Rikke
  • Rosholm, Michael
  • Westergaard-Nielsen, Niels
Abstract
We test the signalling hypothesis using detailed flow-based employer–employee data from Denmark. Our main findings are: the signalling value is proportional to the proportion of employees dismissed from the workplace and the signal is uniform across occupation groups.

Suggested Citation

  • Frederiksen, Anders & Ibsen, Rikke & Rosholm, Michael & Westergaard-Nielsen, Niels, 2013. "Labour market signalling and unemployment duration: An empirical analysis using employer–employee data," Economics Letters, Elsevier, vol. 118(1), pages 84-86.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:84-86
    DOI: 10.1016/j.econlet.2012.09.032
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    1. Anders Frederiksen & Elod Takats, 2005. "Layoffs as Part of an Optimal Incentive Mix: Theory and Evidence," Working Papers 881, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Matthew Forbes & Andrew Barker, 2017. "Local Labour Markets and Unemployment Duration," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 238-254, June.
    2. Matthew Baird & Paul Ko & Nikhil Gahlawat, 2024. "Skill Signals in a Digital Job Search Market and Duration in Employment Gaps," Journal of Labor Research, Springer, vol. 45(3), pages 403-435, September.
    3. Andrew B. Bernard & Valerie Smeets & Frederic Warzynski, 2017. "Rethinking deindustrialization," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(89), pages 5-38.
    4. Meekes, Jordy & Hassink, Wolter H.J., 2019. "The role of the housing market in workers′ resilience to job displacement after firm bankruptcy," Journal of Urban Economics, Elsevier, vol. 109(C), pages 41-65.
    5. Becker, Sebastian & Jahn, Elke, 2015. "Labor Market Signaling and Unemployment Duration: Evidence from Germany," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112981, Verein für Socialpolitik / German Economic Association.
    6. J. Meekes & W.H.J. Hassink, 2016. "The role of the housing market in workers’ resilience to job displacement after firm bankruptcy," Working Papers 16-10, Utrecht School of Economics.
    7. Darja Boršič & Alenka Kavkler, 2009. "Modeling Unemployment Duration in Slovenia using Cox Regression Models," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 145-156, May.
    8. Meekes, Jordy & Hassink, Wolter, 2017. "The Role of the Housing Market in Workers' Resilience to Job Displacement after Firm Bankruptcy," IZA Discussion Papers 10894, Institute of Labor Economics (IZA).
    9. Appelqvist, Jukka, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, VATT Institute for Economic Research.

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    More about this item

    Keywords

    Unemployment duration; Signalling; Workplace closure;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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