Job Search Under Uncertainties
March 2, 2011
This paper examines a problem of a labor market under uncertainties. It is assumed that there are a geometric Brownian uncertainty of a good price and a Poisson uncertainty of labor's productivity. As a result, I derive the optimality condition for a labor contract, and moreover compute the Nash's bargaining solution under such an uncertain situation.
Number of Pages in PDF File: 13
Keywords: Random search model, matching function, Geometric Brownian motion
JEL Classification: C02, C63, E2working papers series
Date posted: April 18, 2011
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