The wage posting approach to search equilibrium is incorporated into the equilibrium unemployment approach in the paper. The unique equilibrium to the wage posting game analyzed is a distribution of wage offers of the same functional form as that originally derived by Burdett and Mortensen...

Equilibrium models of labor markets characterized by search and recruiting friction and by the need to reallocate workers from time to time across alternative productive activities represent the segment of the research frontier explored in this chapter. In this literature, unemployment spell and...