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Job Search Mechanism and Individual Behaviour

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  • Giannini, Massimo

Abstract

This paper modelles job search mechanism at individual level by a determinstic-stochastic approach in a economy with perfect competion and rational agents. Each single unit, firm or worker, is analyzed over time; aggregate dynamics comes directly from the micro-structure of the economy. We show that the unemployment as well as vacancy rate converge in the long run to an ergodic distribution whose average value lies on the Beverdige curve. Transitional paths are not-monotone and depending on initial conditions. The micro-model is exploited to assess the relationship between job search and social networks (neighborhood effects); results show that, when the network is endogenous, such spillovers affect both transitional paths and steady state in several way, not last in a negative way.

Suggested Citation

  • Giannini, Massimo, 2004. "Job Search Mechanism and Individual Behaviour," Economics & Statistics Discussion Papers esdp04017, University of Molise, Department of Economics.
    • Handle: RePEc:mol:ecsdps:esdp04017
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    References listed on IDEAS

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    1. Calvo-Armengol, Antoni & Zenou, Yves, 2005. "Job matching, social network and word-of-mouth communication," Journal of Urban Economics, Elsevier, vol. 57(3), pages 500-522, May.
    2. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    3. Pierre Cahuc & François Fontaine, 2009. "On the Efficiency of Job Search with Social Networks," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(3), pages 411-439, June.
    4. Aièllo, O.E & Haas, V.J & daSilva, M.A.A & Caliri, A, 2000. "Solution of deterministic–stochastic epidemic models by dynamical Monte Carlo method," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 282(3), pages 546-558.
    5. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
    6. Aiello, O.E. & da Silva, M.A.A., 2003. "New approach to dynamical Monte Carlo methods: application to an epidemic model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 327(3), pages 525-534.
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    More about this item

    Keywords

    job-search; human capital; local effects;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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