When workers have incomplete information about their ability, they can learn about this ability by searching for jobs, both while employed and unemployed. Search outcomes yield information for updating the belief about the ability which affects optimal search decisions in the future. Firms...

A worker's job can be improved through on-the-job search (OJS) and job upgrading. Incorporating these external and internal job dynamics into a directed search model, this paper analytically characterizes the socially efficient allocation and quantitatively evaluates the model. The analysis...

I construct a theoretical framework in which firms offer wage-tenure contracts to direct the search by risk-averse workers. All workers can search, on or off the job. I characterize an equilibrium and prove its existence. The equilibrium generates a non-degenerate, continuous distribution of...