The University of Southampton
University of Southampton Institutional Repository

A discrete-time stochastic model of job matching

A discrete-time stochastic model of job matching
A discrete-time stochastic model of job matching
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.
search, job matching, large population approximation, optimal search intensity, endogenous wages
1094-2025
54-79
Smith, Tony E.
5447375a-2f26-4e65-9ad0-953d55a63c30
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
Smith, Tony E.
5447375a-2f26-4e65-9ad0-953d55a63c30
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e

Smith, Tony E. and Zenou, Yves (2003) A discrete-time stochastic model of job matching. Review of Economic Dynamics, 6 (1), 54-79. (doi:10.1016/S1094-2025(02)00007-8).

Record type: Article

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.

Full text not available from this repository.

More information

Published date: 2003
Keywords: search, job matching, large population approximation, optimal search intensity, endogenous wages

Identifiers

Local EPrints ID: 33406
URI: https://eprints.soton.ac.uk/id/eprint/33406
ISSN: 1094-2025
PURE UUID: 702fe17d-1ea4-484d-990b-0be40b076afc

Catalogue record

Date deposited: 16 May 2006
Last modified: 17 Jul 2017 15:52

Export record

Altmetrics

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of https://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×