We construct a simple equilibrium search model in which workers accumulate information about previously met employment contacts. We term the latter search capital. Here search capital (partially) insures workers against adverse shocks. The model provides a theory of job-to-job transitions that are associated with voluntary or involuntary mobility and with wage rises or wage cuts. It also shows why low wage and younger workers are associated with a higher probability of becoming unemployed.
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- Helen Connolly & Peter Gottschalk, 2008. "Wage Cuts as Investment in Future Wage Growth," LABOUR, CEIS, vol. 22(1), pages 1-22, 03.
- Ã‰va NagypÃ¡l, 2006. "On the extent of job-to-job transitions," 2006 Meeting Papers 10, Society for Economic Dynamics.
- Jolivet, Gregory & Postel-Vinay, Fabien & Robin, Jean-Marc, 2006. "The empirical content of the job search model: Labor mobility and wage distributions in Europe and the US," European Economic Review, Elsevier, vol. 50(4), pages 877-907, May.
- Stewart, Mark, 2006.
"The Inter-related Dynamics of Unemployment and Low-Wage Employment,"
The Warwick Economics Research Paper Series (TWERPS)
741, University of Warwick, Department of Economics.
- Mark B. Stewart, 2007. "The interrelated dynamics of unemployment and low-wage employment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 511-531.
- Helen Connolly & Peter Gottschalk, 2002. "Wage Cuts as Investment in Future Wage Growth: Some Evidence," Boston College Working Papers in Economics 543, Boston College Department of Economics, revised 30 Sep 2004.
- Cappellari, Lorenzo & Tatsiramos, Konstantinos, 2011. "Friendsâ€™ networks and job finding rates," ISER Working Paper Series 2011-21, Institute for Social and Economic Research.
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