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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Aleksandr Lukianov
Job Search Model: Endogenous Wage Distribution, Economic Growth and Optimal Policy with Respect to Labor Market
Financial Economics
(Master’s programme)
8
2017
The model presented in chapter 3 of the work analyzes the optimal stopping rule of the representative individual. Under exogenous economic growth and quite general assumptions, the analysis is followed by the derivation of wage distribution and other important features of the model, such as unemployment dynamics, steady-state condition, mass of vacant and occupied firms etc. In the second part of the given chapter we extend the model by introducing taxes and the group of people with the high job search skill. Under the proposed framework, we show how the poorly developed job search skill could cause individuals to vote for remaining under planned system, even though this is inefficient equilibrium.

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