-finding abilities downward and reduce their desired wages. One contribution of the paper is to integrate learning from search into an …We construct an equilibrium theory of learning from search in the labor market, which addresses the search behavior of … workers, the creation of jobs, and the wage distribution as functions of unemployment duration. In the model, each worker has …

In this paper we consider learning from search as a mechanism to understand the relationship between unemployment … efficiency. We characterize situations where reservation wages decline with unemployment duration. Consequently, the wage … individual unemployment spells. The difficulty in establishing these results is that learning generates non-differentiable value …