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Unemployment equilibrium and on-the-job search

Author

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  • Turon, Helene

    (University of Bristol)

  • Simon Burgess

Abstract

This paper uses the search and matching framework to explore the impact of employed job search on the labour market. We allow for endogenous employed job search, endogenous job destruction and heterogenous job creation. Job flows and workers flows do not coincide as we allow for job-to-job flows, firms' churning of workers and labour force entries and exits. Employed job search is shown to have a substantial impact on unemployment dynamics but a negligible one on the level of unemployment. It also plays a key role in propagating a shock to institutions or to the economy to the labour market.

Suggested Citation

  • Turon, Helene & Simon Burgess, 2003. "Unemployment equilibrium and on-the-job search," Royal Economic Society Annual Conference 2003 208, Royal Economic Society.
  • Handle: RePEc:ecj:ac2003:208
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    References listed on IDEAS

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    1. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
    2. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
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    7. Garibaldi, Pietro, 1998. "Job flow dynamics and firing restrictions," European Economic Review, Elsevier, vol. 42(2), pages 245-275, February.
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    Citations

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    Cited by:

    1. Sanna-Mari Hynninen, 2005. "Labour market status of job seekers in regional matching processes," ERSA conference papers ersa05p499, European Regional Science Association.
    2. Abid, Anis Bou & Drine, Imed, 2011. "Efficiency frontier and matching process on the labour market: Evidence from Tunisia," Economic Modelling, Elsevier, vol. 28(3), pages 1131-1139, May.
    3. Elisabetta Marzano, 2008. "Search on the job in European countries: evidence based on the European Community Household Panel Survey (ECHP)," Working Papers 7_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    4. Sanna-Mari Hynninen, 2009. "Heterogeneity of job seekers in labour market matching," Applied Economics Letters, Taylor & Francis Journals, vol. 16(18), pages 1819-1823.
    5. Kangasharju, Aki & Hynninen, Sanna-Mari & Pehkonen, Jaakko, 2006. "Regional Matching Frictions and Aggregate Unemployment," Discussion Papers 383, VATT Institute for Economic Research.
    6. Hynninen, Sanna-Mari & Longhi, Simonetta, 2009. "Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?," ISER Working Paper Series 2009-20, Institute for Social and Economic Research.
    7. Sanna-Mari Hynninen & Jukka Lahtonen, 2007. "Does population density matter in the process of matching heterogeneous job seekers and vacancies?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(5), pages 397-410, December.
    8. Sanna-Mari Hynninen, 2009. "Matching in local labor markets: a stochastic frontier approach," Journal of Productivity Analysis, Springer, vol. 31(1), pages 15-26, February.
    9. Jukka Petteri Lahtonen & Sanna-Mari Hynninen, 2005. "Does population density matter in the matching process of heterogeneous job seekers and vacancies?," ERSA conference papers ersa05p438, European Regional Science Association.
    10. Hynninen, Sanna-Mari, 2009. "Is there a wage curve for the highly educated?," ISER Working Paper Series 2009-17, Institute for Social and Economic Research.

    More about this item

    Keywords

    unemployment; on-the-job search; job destruction; business cycles; matching;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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