1. Introduction -- 1. Subject Matter -- 2. Previous Work -- 3. Choice in Labor Markets -- 4. Outline of Remaining Chapters -- 2. Search in Labor Markets -- 1. Introduction -- 2. Worker Search Behavior -- 3. Impacts of Labor Market Conditions -- 4. Extensions -- 5. Distributions of Workers and...

The paper provides a new model of consumption behavior under uncertainty as the solution to a continuous-time dynamic control problem in which an individual moves between employment and unemployment according to a Markov process. Behavior at low asset levels and at break-even points is analyzed....