Workers in wa firms search for w2 jobs, with higher lifetime utility, rather than w, firms, which do not raise their utility. ... Since there are more firms that can pay the reservation wage of the v, individuals, the unemployment among them falls.
|Title||:||Job Search by Employed Workers|
|Author||:||Avner Bar-Ilan, Anat Litvak Levy|
|Publisher||:||World Bank Publications - 1993|