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Job Search Mechanism and Individual Behaviour

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Author Info
Giannini, Massimo ()
Abstract

This paper modelles job search mechanism at individual level by a determinstic-stochastic approach in a economy with perfect competion and rational agents. Each single unit, firm or worker, is analyzed over time; aggregate dynamics comes directly from the micro-structure of the economy. We show that the unemployment as well as vacancy rate converge in the long run to an ergodic distribution whose average value lies on the Beverdige curve. Transitional paths are not-monotone and depending on initial conditions. The micro-model is exploited to assess the relationship between job search and social networks (neighborhood effects); results show that, when the network is endogenous, such spillovers affect both transitional paths and steady state in several way, not last in a negative way.

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File URL: http://www.unimol.it/progetti/repec/mol/ecsdps/ESDP04017.pdf
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Publisher Info
Paper provided by University of Molise, Dept. SEGeS in its series Economics & Statistics Discussion Papers with number esdp04017.

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Length: 25 pages
Date of creation: 09 May 2004
Date of revision:
Handle: RePEc:mol:ecsdps:esdp04017

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Related research
Keywords: job-search; human capital; local effects;

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Find related papers by JEL classification:
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Job Matching, Social Network and Word-of-Mouth Communication," IZA Discussion Papers 771, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Cahuc, Pierre & Fontaine, François, 2002. "On the Efficiency of Job Search with Social Networks," IZA Discussion Papers 583, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
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This page was last updated on 2009-12-2.

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