Search-Theoretic Models of the Labor Market-A Survey

64 Pages Posted: 29 Aug 2004 Last revised: 14 Aug 2010

See all articles by Richard Rogerson

Richard Rogerson

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER); Princeton University - Woodrow Wilson School of Public and International Affairs

Robert Shimer

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Randall Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking; Federal Reserve Banks - Federal Reserve Bank of Minneapolis

Multiple version iconThere are 2 versions of this paper

Date Written: July 2004

Abstract

We survey search-theoretic models of the labor market and discuss their usefulness for analyzing labor market dynamics, job turnover, and wages. We first examine single-agent models, showing how they can incorporate many interesting features and generate rich predictions. We then consider equilibrium models that endogenize several variables that are treated parametrically in single-agent models, including the arrival rate of job offers and the wage distribution. We survey alternative formulations of these models, emphasizing two key issues: how workers and firms meet, and how wages are determined. We emphasize throughout the implications of alternative assumptions for turnover, wage dispersion, and efficiency.

Suggested Citation

Rogerson, Richard and Shimer, Robert J. and Wright, Randall D., Search-Theoretic Models of the Labor Market-A Survey (July 2004). NBER Working Paper No. w10655. Available at SSRN: https://ssrn.com/abstract=579803

Richard Rogerson (Contact Author)

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
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National Bureau of Economic Research (NBER)

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Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

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Robert J. Shimer

University of Chicago - Department of Economics ( email )

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HOME PAGE: http://home.uchicago.edu/~shimer/

National Bureau of Economic Research (NBER)

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Randall D. Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking ( email )

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Madison, WI 53706
United States
608-263-3860 (Phone)

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

90 Hennepin Avenue
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United States

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