Wage Expectations and Job Search https://d.repec.org/n?u=RePEc:ajk:ajkdps:386&r=&r=eur
"While average misperceptions are relatively small, substantial shares of job seekers display pronounced optimism or pessimism.
… Treated job seekers who were initially strongly optimistic increase their search effort and find jobs more quickly. Conversely, initial pessimists narrow the geographic scope of their search in response to the treatment, which accelerates re-employment—consistent with mitigated spatial search frictions.
… accounting for job seekers’ subjective beliefs is essential when studying search behavior
… suggest that job seekers seem to jointly determine multiple dimensions of their search strategy—including their wage demands, search intensity, and geographic scope. Exogenous changes in one domain can spill over into others
… Both initially optimistic and initially pessimistic job seekers find employment more quickly when holding more accurate beliefs."
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