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Search, Flows, Job Creations and Destructions

  • Cahuc, Pierre


    (Ecole Polytechnique, Paris)

This paper presents a short overview of dynamic models of labor markets with transaction costs. It shows that these models have deeply renewed the understanding of job search, job flows, job creations and destructions, unemployment and wage formation. It argues that this renewal provides a very useful toolkit for analyzing important economic policy issues such as the optimal level of unemployment benefits, the funding of unemployment insurance and the impact of employment protection legislation.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8173.

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Length: 25 pages
Date of creation: May 2014
Date of revision:
Publication status: published in: Labour Economics, 2014, 30, 22-29
Handle: RePEc:iza:izadps:dp8173
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
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