Search theory at twenty-one
Pissarides, C.
(1992).
Search theory at twenty-one.
(CEP discussion paper; CEPDP0090 90).
London School of Economics and Political Science. Centre for Economic Performance.
(1992).
Search theory at twenty-one.
(CEP discussion paper; CEPDP0090 90).
London School of Economics and Political Science. Centre for Economic Performance.
This paper reviews work in search theory, twenty-one years after the publication of the influential Phelps volume. It concentrates on work that builds on the concept of the matching function. It reviews the empirical foundations of the matching function, its implications for labour market equilibrium, in particular wage formation and employment dynamics, and suggests directions for future work.