We analyze a model in which workers direct their search on and off the job and employer-worker match productivities are private information. Employers can commit neither to post contracts such that wages are a function of tenure nor to disregard counteroffers. In this context, potential...

We analyze a model in which workers direct their search on and off the job and employer–worker match productivities are private information. Employers can commit neither to post contracts such that wages are a function of tenure nor to disregard counteroffers. In this context, potential...

This paper presents a model in which mismatch employment arises in a constrained efficient equilibrium. In the decentralized economy, however, mismatch gives rise to a congestion externality whereby heterogeneous job seekers fail to internalize how their individual actions affect the labor...

Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative...