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Search, Unemployment, and the Production of Jobs


  • Davidson, Carl
  • Martin, Lawrence W
  • Matusz, Steven J


The authors investigate the performance of the economy when search is required to find employment and when the duration of unemployment varies across sectors. They assume that in one sector factor markets are frictionless, while in the other se ctor idle factors of production must actively search each other out i n order to produce. They focus on how well the economy allocates work ers across sectors and the conditions under which the factor mix with in a sector is correct. The authors demonstrate that in equilibrium t he search sector is too small and its factor intensity is too asymmet ric. Copyright 1987 by Royal Economic Society.

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  • Davidson, Carl & Martin, Lawrence W & Matusz, Steven J, 1987. "Search, Unemployment, and the Production of Jobs," Economic Journal, Royal Economic Society, vol. 97(388), pages 857-876, December.
  • Handle: RePEc:ecj:econjl:v:97:y:1987:i:388:p:857-76

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    References listed on IDEAS

    1. Blundell, Richard W & Walker, Ian, 1982. "Modelling the Joint Determination of Household Labour Supplies and Commodity Demands," Economic Journal, Royal Economic Society, vol. 92(366), pages 351-364, June.
    2. Doup, T.M. & van der Laan, G. & Talman, A.J.J., 1984. "The (2n+1-2)-ray algorithm : A new simplicial algorithm to compute economic equilibria," Research Memorandum FEW 151, Tilburg University, School of Economics and Management.
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    Cited by:

    1. Spiros Bougheas & Carl Davidson & Richard Upward & Peter Wright, "undated". "Structural Adjustment, Turnover and Career Mobility," Discussion Papers 08/23, University of Nottingham, GEP.
    2. Maxim Bouev, 2005. "State Regulations, Job Search and Wage Bargaining: A Study in the Economics of the Informal Sector," William Davidson Institute Working Papers Series wp764, William Davidson Institute at the University of Michigan.
    3. Davidson, Carl & Martin, Lawrence & Matusz, Steven, 1999. "Trade and search generated unemployment," Journal of International Economics, Elsevier, vol. 48(2), pages 271-299, August.
    4. Hamzeh Arabzadeh, 2016. "The political economy of twin deficits and wage setting centralization," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2016017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, vol. 12(1), pages 113-132, April.
    6. Carl Davidson & Steven J. Matusz, 2010. "Our Motivation," Introductory Chapters,in: International Trade with Equilibrium Unemployment Princeton University Press.
    7. Bradford, Scott, 2006. "Protection and unemployment," Journal of International Economics, Elsevier, vol. 69(2), pages 257-271, July.

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