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Job search with belated information and wage signalling

✍ Scribed by Siegfried Berninghaus

Publisher
Elsevier Science
Year
1986
Tongue
English
Weight
789 KB
Volume
10
Category
Article
ISSN
0165-1889

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✦ Synopsis

The paper uses multi-armed bandit methods to characterize the optimal policy of the job search problem with belated information, that is. if the non-pecuniary aspect of the job is discerned only after the job has been tested for one period. There is given a sufficient condition such that the 'reservation wage property' of the optimal search policy remains preserved even if a job searcher believes in a positive resp. negative correlation between the wage rate (= pecuniary aspect) and the job quality (= non-pecuniary aspect) offered by a fiml.

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