This paper describes a search model with a continuum of worker and job types, transferable utility and an IRS contact technology. We apply a second order Taylor expansion to derive an analytical solution of the equilibrium. We find that one third of the increasing returns in contacts are...

To stimulate the re-employment of unemployed workers, the Dutch local unemployment insurance agencies provide counseling and monitoring. We investigate the effect of this ``active labor market policy'' on the individual transition rate from unemployment to employment. We present a job search...