Cover: Economics of Information and Job Search.

Economics of Information and Job Search.

by John McCall

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback30 pages $20.00 $16.00 20% Web Discount

Two models of an employee's search for work, using some results from the theory of optimal stopping rules. Included are an optimal search policy for a simple model of the search process, a more general model of unemployment (which considers the anticipated period of employment as well as the wage rate as factors in the decisionmaking process), and an adaptive search policy (which results from revisions in the searcher's imperfect knowledge of his wage rate distribution). The distinction between hardcore and fractional unemployment and the effects of various policies to reduce unemployment are interpreted within the framework of the simple model. It is shown that a minimum wage law has no effect on the fractionally unemployed.

This report is part of the RAND Corporation Research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.