@techreport{NBERw4766,
 title = "Mass Layoffs and Unemployment",
 author = "Andrew Caplin and John Leahy",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4766",
 year = "1994",
 month = "June",
 URL = "http://www.nber.org/papers/w4766",
 abstract = {Mass layoffs give rise to groups of unemployed workers who possess similar characteristics and therefore may learn from one another's experience searching for a new job.  Two factors lead them to be too selective in the job offers that they accept.  The first is an information externality: searchers fail to take into account the value of their experience to others.  The second is an incentive to free ride: each worker would like others to experiment and reveal information concerning productive jobs.  Together these forces imply that in equilibrium the natural rate of unemployment is too high.},
}