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Search capital

Carrillo Tudela, C and Smith, E (2017) 'Search capital.' Review of Economic Dynamics, 23. 191 - 211. ISSN 1094-2025

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Abstract

This paper first documents the extent of return employment: workers returning to employers they worked for previously within the same employment spell. Employer returns are typically involuntary and lead to lower earnings. To understand these features, the paper then develops an equilibrium model of worker recall and on-the-job search in which job seekers hold onto information they acquire about job opportunities as insurance in the event of a job destruction shock. Allowing workers to recall contacts increases the probability of a job-to-job transition with the number of jobs previously held during the employment spell while the probability of an job-to-unemployment transition decreases. These transition patterns are consistent with empirical evidence.

Item Type: Article
Uncontrolled Keywords: Search capital; Job turnover; Recall
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 10 Nov 2016 09:49
Last Modified: 25 Sep 2018 14:15
URI: http://repository.essex.ac.uk/id/eprint/17884

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