Unveiling the Secrets of Labour Market Dynamics: What You Need to Know
The article reviews studies that use search theory to understand how people find jobs. Researchers look at data on job changes, wages, and personal traits to create a model of the job market. They find that job search involves making decisions in an uncertain environment. By analyzing these models, researchers can estimate how different factors affect wages and job search outcomes. The main takeaway is that understanding how people search for jobs can help policymakers make better decisions about labor markets.