<p><p><p>If access to credit is limited (especially when young or unemployed) but 'bad' jobs are easy to come by, then job seekers might use short term employment in undesirable jobs as a way to finance consumption during subsequent unemployed search for a 'good' job. In this paper we explore this idea by building a theoretical model of job search by risk averse, debt constrained agents. In this model we characterise analytically conditions under which voluntary planned separations occur as agents cycle between accumulating assets in short term employment and unemployed search for more desirable employment.</p></p></p>
Authors
![Martin Browning](/sites/default/files/styles/square_desktop/public/2022-07/Martin%20Browning.jpg?itok=15ISWZWp)
Martin Browning
Research Associate University of Copenhagen
Martin is an IFS Research Associate, a Nuffield Senior Research Fellow and a Professor of Economics at the University of Oxford.
![Thomas Crossley](/sites/default/files/styles/square_desktop/public/2022-07/Tom%20Crossley.jpg?itok=8BNVWAtq)
Thomas F. Crossley
Research Fellow University of Michigan
Tom is a Research Fellow at IFS, a Research Professor for the Institute for Social Research at the University of Michigan.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Eric Smith
Journal article details
- Publisher
- Elsevier
- JEL
- D83; D91; J64
- Issue
- July 2007
Suggested citation
M, Browning and T, Crossley and E, Smith. (2007). 'Asset accumulation and short term employment' (2007)
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