Destabilizing search technology

Tristan Potter

Journal of Monetary Economics, 2024, vol. 145, issue C

Abstract: Modern job search technologies enable job seekers to monitor the arrival of newly posted vacancies. This paper conceptualizes search as a monitoring decision and shows that monitoring technologies give rise to a novel source of strategic complementarities in search and can thus lead to potentially destabilizing multiplicity of equilibria. The model provides a theory of belief-driven fluctuations in labor supply that can permanently shift the path of the economy, and offers an explanation for persistently weak wage growth despite low unemployment during the recovery from the Great Recession.

Keywords: Search and matching; Online job search; Hysteresis; Beliefs (search for similar items in EconPapers)
JEL-codes: E24 E71 J64 O33 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Destabilizing Search Technology (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:145:y:2024:i:c:s0304393224000102

DOI: 10.1016/j.jmoneco.2024.103557

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