On the job search is a key feature of real life labor markets. In this paper we present a tractable search model, closely related to the competitive model, in which on-the-job search and wage differentials for identical workers are an optimal response to search frictions and heterogeneous firms.
Job to Job Movements in a Simple Search Model
GARIBALDI, Pietro;
2010-01-01
Abstract
On the job search is a key feature of real life labor markets. In this paper we present a tractable search model, closely related to the competitive model, in which on-the-job search and wage differentials for identical workers are an optimal response to search frictions and heterogeneous firms.
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