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Search Unemployment with on-the-job Search

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  • Christopher A. Pissarides

Abstract

This paper introduces on-the-job search into the model of search equilibrium that builds on the concept of the matching function and non-cooperative wage behavior. On-the-job search takes place only at short job tenures because of the accumulation of job-specific human capital. The model of search equilibrium retains familiar structure but yields new results. The most interesting is an increase in cyclical volatility of job vacancies and a dampening in that of unemployment, because of induced changes in the composition of jobs and the number of employed job seekers.

Suggested Citation

  • Christopher A. Pissarides, 1992. "Search Unemployment with on-the-job Search," CEP Discussion Papers dp0074, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0074
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