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Journal article
Destabilizing search technology
Journal of monetary economics, v 145, 103557
11 Jul 2024
Featured in Collection : Research Supported by Drexel Libraries' OA Programs
Abstract
Modern job search technologies enable job seekers to monitor the arrival of newly posted vacancies. This paper conceptualizes search as a monitoring decision and shows that monitoring technologies give rise to a novel source of strategic complementarities in search and can thus lead to potentially destabilizing multiplicity of equilibria. The model provides a theory of belief-driven fluctuations in labor supply that can permanently shift the path of the economy, and offers an explanation for persistently weak wage growth despite low unemployment during the recovery from the Great Recession.
•Theoretical model of search as monitoring decision.•First-mover advantage leads to strategic complementarities and multiple equilibria.•Model gives rise to belief-driven labor supply fluctuations.•Model can help to account for overshooting of unemployment after Great Recession despite tepid wage growth.
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1 citations in Scopus
Details
- Title
- Destabilizing search technology
- Creators
- Tristan Potter (Corresponding Author) - Drexel University
- Publication Details
- Journal of monetary economics, v 145, 103557
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Scopus ID
- 2-s2.0-85184933477
- Other Identifier
- 991021867234104721