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LABOR QUEUES AND INVOLUNTARY UNEMPLOYMENT |
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| Authors: | ROBERT B ARCHIBALD |
| Institution: | College of William and Mary;*I am indebted to John Carlson, John Chelius, Steven Cobb, Robert Gillingham, James Moore, William Reece and Robert Van Order for helpful comments. I would like to acknowledge research support from the Brookings Institution through a Baker-Weeks fellowship. A portion of this paper was written while I was at the Bureau of Labor Statistics;however, the views expressed are my own and do not reflect the policies of the BLS or views of other BLS staff members. |
| Abstract: | This paper outlines a job search model which emphasizes the placing of applications by job searchers and the firm's use of a queue of applicants as an inventory of labor. The paper analyzes the consequences of the assumption that firms hold queues of applicants both for the decisions of a single firm and for a market composed of several such firms. The aggregate results suggest that considering such labor market queuing helps explain wage rigidity and involuntary unemployment. |
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