The subject of this study is the process by which unemployed workers are reemployed after a layoff. A theoretical model of job search is formulated with asking price based on number of job vacancies, distribution of offers, value placed on nonmarket activity, cost of search activity, and interest rate. A probability model of reemployment is tested, using Arms Control and Disarmament Agency survey data. The major findings are (a) older workers do poorly after a layoff in long duration of unemployment and low wage on first job accepted, (b) wage level on first job accepted after layoff is positively correlated with education up to the level of bachelors degree and then negative returns set in, (c) managerial and professional workers do better than other groups in maintaining income after layoff. (MS)