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Job Search and Implicit Contracts

Richard Cothren

Journal of Political Economy 1983

A model incorporating costly search and implicit contracts is examined. The contracts differ from those studied in the traditional literature by allowing for both temporary and permanent layoffs. A natural rate of unemployment is determined, and comparative statics analysis shows that changes in the utility value of leisure, in the cost of search, and in the dispersion of prices each have an ambiguous effect on this natural rate.

DOI
10.1086/261160
Volume
91 (3)
Pages
494-504
Language
en
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