A Search Model with a Quasi-Network

TY - UNPB

T1 - A Search Model with a Quasi-Network

AU - Ejarque, Joao Miguel

N1 - JEL Classification: D83, D85, E24, J21, J64

PY - 2010

Y1 - 2010

N2 - This paper adds a quasi-network to a search model of the labor market. Fitting the model to an average unemployment rate and to other moments in the data implies the presence of the network is not noticeable in the basic properties of the unemployment and job finding rates. However, the network creates downward sloping reemployment hazards which the basic model does not, and under increasing network returns these hazards are significantly convex as we see in the data. Going into more detail we find that the network gets partially destroyed in periods of high unemployment and generates less job creation per link, while at the same time the jobs it does create, it does so with fewer links.

AB - This paper adds a quasi-network to a search model of the labor market. Fitting the model to an average unemployment rate and to other moments in the data implies the presence of the network is not noticeable in the basic properties of the unemployment and job finding rates. However, the network creates downward sloping reemployment hazards which the basic model does not, and under increasing network returns these hazards are significantly convex as we see in the data. Going into more detail we find that the network gets partially destroyed in periods of high unemployment and generates less job creation per link, while at the same time the jobs it does create, it does so with fewer links.

KW - Faculty of Social Sciences

KW - netværk

KW - duration

KW - networks

KW - unemployment

M3 - Working paper

BT - A Search Model with a Quasi-Network

PB - Department of Economics, University of Copenhagen

ER -