On-the-job search fuels labor market fluctuations and job creation.
The article discusses how workers searching for new jobs while still employed can impact the job market during economic ups and downs. The researchers found that this on-the-job search can make companies more likely to create new job openings, leading to more job opportunities. This process helps keep job creation costs low for companies and can amplify the effects of economic changes. By studying this phenomenon, the researchers were able to create a model that closely matches real-world data on unemployment, job vacancies, and job transitions. This type of job search also creates patterns in the job market that are not seen in traditional models.