← Search

Temporary Layoffs in the Theory of Unemployment

Martin Feldstein

Journal of Political Economy 1976

The typical worker who is laid off is soon rehired by his original employer. This important and generally unnoticed fact requires a major reevaluation of our current theories of unemployment. This paper develops a theory of temporary layoffs. Specific attention is given to the question of why employment is reduced instead of hours. The role of unemployment insurance and of taxes is examined in detail.

DOI
10.1086/260491
Volume
84 (5)
Pages
937-957
Language
en
Export
BibTeX
Sources
openalex crossref