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Economic and Psychological Models of Job Search Behavior of the Unemployed

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Human Relations

Abstract

Economic and psychological theories relating tojob search behavior by the unemployed are considered.There exists a noticeable contrast between the economicapproach which is almost exclusively based on a single model of the rational job seeker, andthe diverse approaches adopted by psychologists.Accordingly, the paper concentrates on areas of researchby psychologists which are relevant to the economic model. The paper starts with an overview of theresearch program in economics. Next, the psychologicalliterature on the general well-being of the unemployedis briefly surveyed; this research might be useful in informing economic studies of theeffects of the duration of unemployment on an individuals search behavior. Two psychological approaches to jobsearch behavior are then discussed, namelyexpectancy-value theory and prospect theory. Findings using theexpectancy-value approach suggest that certainpsychological variables, including normative pressures,might play an important role in job search. In addition, these findings highlight the complexrelationship between job expectations and searchintensity. Finally, it is suggested that the role andimportance of certain psychological variables such asstatus might be expected to vary over the course ofunemployment.

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  1. R. G. Mcfadyen
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  2. J. P. Thomas
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Mcfadyen, R.G., Thomas, J.P. Economic and Psychological Models of Job Search Behavior of the Unemployed. Human Relations 50, 1461–1484 (1997). https://doi.org/10.1023/A:1016915430438

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