Non-Sequential Search, Screening Externalities and the Public Good Role of Recruitment Offices
نویسنده
چکیده
This paper focuses on a congestion externality in the labor market which is caused by non sequential search. A model is presented in which unemployment is caused by selection delays of the employers It is shown that the individual probability to get a job offer is increasing in the number of applications but that the aggregate hiring rate is decreasing in the average amount of applications per applicant. The congestion externality can be reduced by institutions which specialize in screening large groups of workers such as temporary employment agencies, labour offices, and head hunters. (JEL classification: C44, D62, J64,
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