Do social networks induce better matches? To investigate this issue, we provide a flexible job search model where workers use formal methods of search and social networks to get a job. In this framework, we show that it is not possible to identify the effect of networks on the allocation of...

We provide a matching model where identical workers are embedded inex-ante identical social networks. Job arrival rate is endogeneous and wages are bargained. We study the evolution of networks over time and characterize the equilibrium distribution of unemployment rates across networks. We...

In this paper, we provide a simple matching model with different search methods. We show that the individuals can choose the inefficient one. In the presence of different methods of search, unemployment benefits hikes can be used as a coordination device to improve welfare and decrease the...

This paper provides a theoretical model for explaining the empirical evidence of unemployment insurance non take-up. Our framework is focused on four determinants of take-up: the monetary incentives, the imperfect information about the eligibility rules, the administrative difficulties to make a...