@TechReport{iza:izadps:dp9680,
            	author={Borgschulte, Mark and Martorell, Paco},
            	title={Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment},
            	year={2016},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9680},
            	url={https://www.iza.org/publications/dp9680},
	abstract={This paper provides revealed-preference estimates of the monetary value of avoiding job search in a high-unemployment labor market by examining the behavior of military servicemembers deciding between reenlisting and exiting the military. We find that servicemembers would sacrifice 1.5-2% in earnings in exchange for avoiding a one percentage point increase in the home-state unemployment rate. Comparing these estimates to realized losses in post-service civilian earnings resulting from exiting the military during times of high unemployment suggests that mitigating factors (e.g., leisure, private and public transfers) offset less than one-third of the earnings losses caused by entering a weak labor market.},
	keywords={labor market entry;welfare cost of business cycles;military reenlistment},
            }