On-the-Job Search and Labor Market Reallocation

Labor market policies and job search

2 A sizable share of unemployment can be attributed to frictions in the labor market. The simultaneous existence of vacancies and job seekers proves that job search requires effort and time. To improve the efficiency of this process, many countries offer active labor market policies. Evaluating how these programs affect job prospects of job seekers is crucial for effective policy making and for...

Nash Bargaining, On-the-job Search and Labor Market Equilibrium

The Job Search Intensity Supply Curve: How Labor Market Conditions Affect Job Search Effort

During the Great Recession of 2007, unemployment reached nearly 10 percent and the ratio of unemployment to open positions (as measured by the Help Wanted OnLine Index) more than tripled. The weak labor market prompted an unprecedented extension in the length of time in which a claimant can collect unemployment insurance (UI) to 99 weeks, at an expense to date of $226.4 billion. While many clai...

On - the - Job Search , Minimum Wages , and Labor Market Outcomes in an Equilibrium Bargaining Framework

We look at the impact of a binding minimum wage on labor market outcomes and welfare distributions in a partial equilibrium model of matching and bargaining in the presence of on-the-job search. We use two different specifications of the Nash bargaining problem. In one, firms engage in a Bertrand competition for the services of an individual, as in Postel-Vinay and Robin (2002). In the other, f...

On-the-Job Search, MinimumWages, and Labor Market Outcomes in an Equilibrium Bargaining Framework1

We look at the impact of a binding minimum wage on labor market outcomes and welfare distributions in both partial and general equilibrium models of matching and bargaining a currentlyemployed individual can meet other potential employers (on-the-job search). In analyzing and estimating the model, we use two different specifications of the Nash bargaining problem. In one, firms engage in a Bert...