In each of the following scenarios, indicate which parameter in the Search and Matching Model of Unemployment might change in that scenario and why and whether it will increase or decrease. Using the two graphs outlined in the Notes on Search and Matching unemployment, indicate what happens to the Beveridge, Definition, WS, and JC curves (in both a wage-tightness graph and a vacancies-searchers graph) and steady state θ, w, v and s in response to the change in the parameter. State in words which curve shifts and in what direction and what happens to the steady state equilibrium variables. Drawing a graph is desirable but not necessary. a. The appearance of LinkedIn.com allows employers to post open positions on the webstie and to find suitable workers to hire faster. b. Sectoral shifts in the economy become more frequent so that different jobs (industries) are destroyed more often.
In each of the following scenarios, indicate which parameter in the Search and Matching Model of
a. The appearance of LinkedIn.com allows employers to post open positions on the webstie and to find suitable workers to hire faster.
b. Sectoral shifts in the economy become more frequent so that different jobs (industries) are destroyed more often.
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