There has been much economic research on labour force dynamics; the movement of individuals between labour force states. This work focuses on the methods by which behavioural theories of labour force dynamics have been empirically implemented. Most attention is paid to the partial equilibrium two-state transitional model of job search behaviour. That model is the foundation for much of our thinking about the nature of unemployment at both the individual and aggregate levels. Although the basic formulation has remained the same, approaches to the empirical implementation of such models has changed dramatically.
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Kenneth I. Wolpin is currently Professor of Economics at the University of Pennsylvania.
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