Search Unemployment with On-the-Job Search
AbstractThis paper introduces on-the-job search into the model of search equilibrium that builds on the concept of the matching function and noncooperative wage behavior. On-the-job search takes place only at short job tenures because of the accumulation of job-specific human capital. The model of search equilibrium retains its familiar structure but yields new results. The most interesting one is a fall in the responsiveness of unemployment to productivity shocks because of induced changes in the composition of jobs and the number of employed job seekers. Copyright 1994 by The Review of Economic Studies Limited.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Economic Studies.
Volume (Year): 61 (1994)
Issue (Month): 3 (July)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6527
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