The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Labour Market Search

  • Dale Mortensen
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1988

Abstract

Time and other resources are required in the process by which workers and jobs are matched: this process is referred to as labour market search. Models of the search process have made contributions to our understanding of unemployment incidence and duration, labour turnover, earnings growth and wage dispersion. These models, which are based on the assumption that agents act in their own best interest, are designed characterize market equilibria in environments complicated by imperfect information and uncertainty. Consequently, they are also useful in the analysis of labour market policy.

Keywords

Beveridge curve Labour market search Law of one price Market tightness Matching Productivity shocks Reservation wage Search costs Search theory Social networks Unemployment Unemployment insurance Wage dispersion 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Dale Mortensen
    • 1
  1. 1.