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On-the-Job Search and the Beveridge Curve

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  • Mr. Andrés Fuentes

Abstract

This paper presents a theoretical and empirical investigation of the role on-the-job search plays in explaining shifts of the unemployment-vacancies relationship (the Beveridge curve). We show that the direction of the shift depends on the parameters of the matching model, regardless of the assumptions made on the relative search effectiveness of employed and unemployed searchers. We estimate a Beveridge Curve equation with a panel of British regions controlling for unobserved aggregate unemployment effects. We find evidence that the rise in on-the-job search in the 1980s has shifted the Beveridge Curve outwards.

Suggested Citation

  • Mr. Andrés Fuentes, 2002. "On-the-Job Search and the Beveridge Curve," IMF Working Papers 2002/037, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/037
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    Citations

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    Cited by:

    1. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    2. Carsten Ochsen, 2009. "On the measurement of mismatch," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 405-409.
    3. Jos Van Ommeren & Mihails Hazans, 2008. "Workers' Valuation of the Remaining Employment Contract Duration," Economica, London School of Economics and Political Science, vol. 75(297), pages 116-139, February.
    4. Burgess, Simon & Turon, Hélène, 2010. "Worker flows, job flows and unemployment in a matching model," European Economic Review, Elsevier, vol. 54(3), pages 393-408, April.

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