Matching frictions imply the value of being unemployed depends on the stream of future UI payments. The sooner a worker's eligibility to UI payments expires, the lower the value to remaining unemployed. In the moral hazard literature, declining UI payments are used to trigger greater search e®ort. Here declining UI payments undermine the worker's bargaining position and (partially) corrects the...

In this paper, the Cox proportional hazard model is used to answer several questions. In general, fourteen variables are applied in four groups: firm, industry, expenditure human resources specific characteristics as well. According to the previous literature in this field, the findings of this paper also show that the factors which affect life duration of firms are different between industries...