A Discrete-Time Stochastic Model of Job Matching

B-Tier
Journal: Review of Economic Dynamics
Year: 2003
Volume: 6
Issue: 1
Pages: 54-79

Authors (2)

Anthony E. Smith (not in RePEc) Yves Zenou (Monash University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, an explicit micro scenario is developed which yields a well-defined aggregate job matching function. In particular, a stochastic model of job-matching behavior is constructed in which the system steady state is shown to be approximated by an exponential-type matching function, as the population becomes large. This steady-state approximation is first derived for fixed levels of both wages and search intensities, where it is shown (without using a free-entry condition) that there exists a unique equilibrium. It is then shown that if job searchers are allowed to choose their search intensities optimally, this model is again consistent with a unique steady state. Finally, the assumption of a fixed wage is relaxed, and an optimal 'offer wage' is derived for employers (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:v:6:y:2003:i:1:p:54-79
Journal Field
Macro
Author Count
2
Added to Database
2026-01-29