Search and the Labour Market
Australian Economic Review, 2014, vol. 47, issue 2, 269-276
This article surveys some of the contributions of search theory to understanding labour markets. Search theory assumes that trading does not occur in perfectly competitive markets, but rather that frictions exist in the trading process. By making this assumption, search theory is able to explain several aspects of labour market behaviour that are difficult to understand from the perspective of a perfectly competitive labour market.
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