Learning and job search dynamics during the Great Recession

• 成果类型: Article
• 署名作者: Potter, Tristan
• 署名单位: Drexel University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2020.04.006
• 发表日期: 2021
• 关键词: unemployment; sequential search; learning

摘要

Krueger and Mueller (2011) document that search effort declined with unemployment duration during the Great Recession. I show that variation in past effort explains this decline. Furthermore, job offers increase subsequent effort. These facts are inconsistent with standard models of search. I introduce a model of sequential search in which workers are uncertain about the offer arrival process and learn through search. Evolving beliefs influence search through two competing channels: the opportunity cost of leisure and the option value of unemployment. Estimation of the model indicates that learning provides a strong account of job search dynamics during the Great Recession. (C) 2020 Elsevier B.V. All rights reserved.