Tuesday, November 9, 2010

search theory and adverse supply

I heard a hardware store owner on the radio saying that, the high unemployment rate notwithstanding, he's having trouble finding candidates who have the skills he needs -- knowing their way around tools, paint, etc., to be able to help customers. It seems superficially plausible that an increase in the number of people looking for jobs would adversely impact an employer if it induces applicants to look for jobs for which they are less well suited, imposing higher information costs on an employer.

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