Worker search effort as an amplification mechanism

• 成果类型: Article
• 署名作者: Gomme, Paul; Lkhagvasuren, Damba
• 署名单位: Concordia University - Canada; Universite de Montreal; National University of Mongolia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.02.002
• 发表日期: 2015
• 页码: 106-122
• 关键词: Variable search effort; Unemployment and vacancies; Beveridge curve; Search intensity; time use

摘要

It is well known that the Diamond-Mortensen-Pissarides model exhibits a strong tradeoff between cyclical unemployment fluctuations and the size of rents to employment. Introducing endogenous job search effort reduces the strength of the trade-off while bringing the model closer to the data. Ignoring worker search effort leads to a large upward bias in the elasticity of matches with respect to vacancies. Merging the American Time Use Survey and the Current Population Survey, new evidence in support of procyclical search effort is presented. Average search effort of the unemployed is subject to cyclical composition biases. (C) 2015 Elsevier B.V. All rights reserved.