On-the-Job Search and the Beveridge Curve
February 1, 2002
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Summary
This paper presents a theoretical and empirical investigation of the role on-the-job search plays in explaining shifts of the unemployment-vacancies relationship (the Beveridge curve). We show that the direction of the shift depends on the parameters of the matching model, regardless of the assumptions made on the relative search effectiveness of employed and unemployed searchers. We estimate a Beveridge Curve equation with a panel of British regions controlling for unobserved aggregate unemployment effects. We find evidence that the rise in on-the-job search in the 1980s has shifted the Beveridge Curve outwards.
Subject: Employment, Labor, Labor force, Labor markets, Unemployment, Unemployment rate
Keywords: Employment, job search, job searcher, job turnover, Labor force, Labor markets, Labour Force Survey unemployment count, Matching models, replacement ratio, steady state unemployment-vacancies relationship, Unemployment, Unemployment rate, unemployment vacancies relationship, vacancies, WP
Pages:
19
Volume:
2002
DOI:
Issue:
037
Series:
Working Paper No. 2002/037
Stock No:
WPIEA0372002
ISBN:
9781451845587
ISSN:
1018-5941
