Using data on adult male workers we first investigate theincremental effect of a year of schooling on unemployed hours,and use this calculation to explain the difference in the pro-portional effects of schooling on earnings and wages. Schoolingapparently reduces unemployed hours by reducing the incidence ofunemployment spells, but it does not significantly affect theirduration. We next test whether unemployed hours representreal constraints on worker behavior. To do this we...