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Unemployment equilibrium and on-the-job search

Hélène Turon () and Simon Burgess ()

No 208, Royal Economic Society Annual Conference 2003 from Royal Economic Society

Abstract: This paper uses the search and matching framework to explore the impact of employed job search on the labour market. We allow for endogenous employed job search, endogenous job destruction and heterogenous job creation. Job flows and workers flows do not coincide as we allow for job-to-job flows, firms' churning of workers and labour force entries and exits. Employed job search is shown to have a substantial impact on unemployment dynamics but a negligible one on the level of unemployment. It also plays a key role in propagating a shock to institutions or to the economy to the labour market.

Keywords: unemployment; on-the-job search; job destruction; business cycles; matching (search for similar items in EconPapers)
JEL-codes: J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2003-06-04
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