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Systematic and Random Search A Synthesis

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  • Lawrence M. Kahn
  • Stuart A. Low

Abstract

This paper synthesizes two models of search in the labor market: systematic and random. We construct and test a theoretical model in which the searcher is endowed with information on some (possibly zero or all) individual firms in the labor market, as well as the overall wage offer distribution. We test the model using a special wave of the 1976 Current Population Survey. The major theoretical results of our model are as follows: searchers with lower stocks of knowledge (about individual firms), higher discount rates, or having lower coverage by unemployment insurance are more likely to engage in random search activities.

Suggested Citation

  • Lawrence M. Kahn & Stuart A. Low, 1988. "Systematic and Random Search A Synthesis," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 1-20.
    • Handle: RePEc:uwp:jhriss:v:23:y:1988:i:1:p:1-20
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    Cited by:

    1. Cobb-Clark, Deborah A. & Frijters, Paul & Kalb, Guyonne, 2004. "Do You Need a Job to Find a Job?," IZA Discussion Papers 1211, Institute of Labor Economics (IZA).
    2. Gustavo Márquez & Cristobal Ruiz-Tagle, 2004. "Métodos de búsqueda y resultados en países en desarrollo: el caso de Venezuela," Research Department Publications 4384, Inter-American Development Bank, Research Department.
    3. Deborah Cobb-Clark & Paul Frijters & Guyonne Kalb, 2004. "Job Search Success: Comparing Job Offer Rates In and Out of Employment," Melbourne Institute Working Paper Series wp2004n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Márquez, Gustavo & Ruiz-Tagle V., Cristóbal, 2004. "Search Methods and Outcomes in Developing Countries: The Case of Venezuela," IDB Publications (Working Papers) 3250, Inter-American Development Bank.
    5. Marco Caliendo & Ricarda Schmidl & Arne Uhlendorff, 2011. "Social networks, job search methods and reservation wages: evidence for Germany," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 796-824, October.
    6. Gustavo Márquez & Cristobal Ruiz-Tagle, 2004. "Search Methods and Outcomes in Developing Countries: The Case of Venezuela," Research Department Publications 4383, Inter-American Development Bank, Research Department.
    7. Cobb-Clark, Deborah A. & Frijters, Paul & Kalb, Guyonne, 2004. "Do You Need a Job to Find a Job?," IZA Discussion Papers 1211, Institute for the Study of Labor (IZA).

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