On the ambiguity of job search.

Who knows the underlying productivity distribution function? Interestingly, this ambiguous function is often referenced to make decisions including job creations, wage determinations, contract formulations, etc. To investigate how ambiguity shapes labor markets, we integrate ambiguity preferences in...

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Published in:Economic Inquiry Vol. 61; no. 4; pp. 1006 - 1034
Main Authors: Chan, Ying Tung, Yip, Chi Man
Format: Article
Published: Wiley-Blackwell Oct2023
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Oct2023
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        atl: On the ambiguity of job search.
      aug:
        au:
          Chan, Ying Tung
          Yip, Chi Man
        affil:
          Bay Area International Business School, Beijing Normal University, Zhuhai, China
          School of Accounting and Finance, The Hong Kong Polytechnic University, Hong Kong, China
      su:
        Job hunting
        Employment policy
        Distribution (Probability theory)
        Ambiguity
        Unemployment statistics
      sug:
        subj:
          Job hunting
          Employment policy
          Distribution (Probability theory)
          Ambiguity
          Unemployment statistics
      keyword:
        ambiguity aversion
        skewness shocks
        unemployment
        ambiguity aversion
        skewness shocks
        unemployment
      ab: Who knows the underlying productivity distribution function? Interestingly, this ambiguous function is often referenced to make decisions including job creations, wage determinations, contract formulations, etc. To investigate how ambiguity shapes labor markets, we integrate ambiguity preferences into the Diamond‐Mortensen‐Pissarides (DMP) model. We find that ambiguity‐averse job‐ and talent‐hunters are conservative. Our quantitative analysis indicates that but for the ambiguity, the American unemployment rate would have increased in the postwar era. This paper generalizes the DMP model, enhances our understanding of the labor market, and calls for policies concerning labor market information.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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