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The hypothesis we seek to test is that the longer workers are ...
The hypothesis we seek to test is that the longer workers are
unemployed the less they become tied to the job market, either because, on the supply side, they
grow discouraged and search for a job less intensively (e.g., Krueger and Mueller, 2011) or
because, on the demand side, employers discriminate against the long-term unemployed, based
on the (rational or irrational) expectation that there is a productivity-related reason that accounts
for their long jobless spell (e.g., Kroft, Lange and Notowidigdo, 2013 and Ghayad, 2013).