Formal and informal job search

I develop a model where workers decide how hard to look for a job via formal and informal search channels. The intensity of formal search determines an individuals arrival rate of offers. The strength of investment in informal search translates into a job contact network in which job offers are transmitted. There are two equilibria, one with high formal search and one with high informal search. The former Pareto dominates the latter.

Publication year:2014

Keywords:A1 Journal article

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