Directed search, unemployment and public policy

Benoit Julien, John Kennes, Ian King, Sephorah Mangin

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)

Abstract

We examine the effects of public policy parameters in a simple directed search model of the labour market, and contrast them with those in standard random matching models with Nash bargaining. Both finite and limit versions of the directed search model are considered, and the value of the limit model as an approximation of the finite one is assessed. As with the random matching model, job creation is the key channel through which the policy parameters affect the equilibrium of the directed search model. Both comparative static effects of the policy parameters and optimal configurations are identified.
Original languageEnglish
Pages (from-to)956-983
Number of pages28
JournalCanadian Journal of Economics
Volume42
Issue number3
DOIs
Publication statusPublished - 2009
Externally publishedYes

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