In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker s influence, while the re-employment chance is directly affected by search effort. We characterize the worker s optimal savings and job-search...

In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker`s influence, while the reemployment chance is directly affected by search effort. We characterize the worker`s optimal savings and jobsearch...

In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker's influence, while the re-employment chance is directly affected by search effort. We characterize the worker's optimal savings and job-search...