The cyclicality of job search effort in matching models

Çenesiz, A. ORCID: 0000-0002-3889-4180 and Guimaraes, L., 2022. The cyclicality of job search effort in matching models. Oxford Economic Papers. ISSN 0030-7653

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Abstract

The canonical matching model is the workhorse model of the labour market but lacks a proper amplification mechanism for productivity shocks. One way to amplify the effects of shocks is to allow workers to endogenously adjust their job search effort: as search effort is procyclical in the canonical model, volatilities increase. Yet, the empirical literature points against procyclical search effort, raising doubts of how acyclical (or counteryclical) search effort can coincide with volatile labour market variables in matching models. We show that they can coincide in a model with procyclical value of leisure and alternating-offer wage bargaining.

Item Type: Journal article
Publication Title: Oxford Economic Papers
Creators: Çenesiz, A. and Guimaraes, L.
Publisher: Oxford University Press (OUP)
Date: 2 February 2022
ISSN: 0030-7653
Identifiers:
NumberType
10.1093/oep/gpac001DOI
1511810Other
Rights: © Oxford University Press 2022. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
Divisions: Schools > Nottingham Business School
Record created by: Laura Ward
Date Added: 11 Feb 2022 15:03
Last Modified: 11 Feb 2022 15:03
URI: http://irep.ntu.ac.uk/id/eprint/45635

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