A Generalized Theory of Job Search

Abstract

A job-search model is constructed incorporating previously ignored features such as a nonlinear utility function, endogenously changeable job skills, a career time horizon, a preference for the "kind" of work done, and a modified effect of search. Then the optimal vector of decision variables, namely, the acceptance wage and the rate of saving and search, is characterized. By using the information generated by the model, comparisons with the existing literature are made and the significance of differences noted.