Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Markets E06-V1
Fixed search costs, i.e. costs that don’t vary with search duration, can amplify the cyclical volatility on the labor market. To assess the size of fixed costs, we analyse the relation of search costs and search duration with data from Germany. We find that fixed search costs are about one half of total search costs, but this is not enough to solve the labor market volatility puzzle completely.