Job Search Theory
This chapter summarizes the main developments in job search theory ever since its inception in the 1970s. After describing the assumptions and formulation of the basic model, the chapter moves onto analyzing how the original framework has been extended by removing some of the initial limitations. A separate section is then devoted to the matching function theory which represents one of the main developments of job search theory in more recent years and whose importance has been recognized by the award of the 2010 Nobel Prize in economics. The last section attempts to reconcile job search and migration theory by introducing the role of space and describing the main contributions on these topics by regional economists.
KeywordsHuman Capital Matching Function Local Labor Market Reservation Wage Unemployed Worker
I acknowledge the support of research grant ECO2010-16006 by the Spanish Ministry of Science.
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