Landais, Camille; Michaillat, Pascal; Saez, Emmanuel - Centre for Economic Performance, LSE - 2011
, jobs are lacking irrespective of job search. Therefore (1) a higher aggregate search effort cannot reduce aggregate … unemployment much; and (2) individual search effort creates a negative externality by reducing other jobseekers' probability of … finding a job as in a rat race. Hence the social benefits of job search are low. In a calibrated model, optimal UI increases …