Publikation: Variable Search Intensity with Coordination Unemployment
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2010
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The B. E. Journal of Macroeconomics. 2010, 10(1), 31. Available under: doi: 10.2202/1935-1690.2162
Zusammenfassung
This paper analyzes an urn ball matching model in which workers decide how intensively they sample job openings and apply at a stochastic number of suitable vacancies. The model allows for tractable equilibrium characterization with a continuous search intensity margin. Equilibrium is not constrained efficient; entry is excessive, search intensity can be too high or too low, and an inefficient discouraged worker effect among homogenous workers emerges under adverse labor market conditions. Unlike existing coordination friction economies with fixed search intensity, the model can account for the empirical relation between the job finding rate and the vacancy unemployment ratio, provided that search costs are small and that search intensity is sufficiently procyclical.
Zusammenfassung in einer weiteren Sprache
Fachgebiet (DDC)
330 Wirtschaft
Schlagwörter
Matching function, Coordination frictions, Unemployment
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KAAS, Leo, 2010. Variable Search Intensity with Coordination Unemployment. In: The B. E. Journal of Macroeconomics. 2010, 10(1), 31. Available under: doi: 10.2202/1935-1690.2162BibTex
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