The Probability of Finding a Job in the Two-Sided Search

question 23

Multiple Choice

The probability of finding a job in the two-sided search model is

• A) decreasing in the efficiency of the matching function.
• B) increasing in market tightness.
• C) increasing in the ratio of consumers searching to firms.
• D) decreasing in market tightness.
• E) constant across all levels of market tightness.

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Definitions:

Members

Individuals who are part of a group, organization, or community, sharing common interests or objectives.

Givebacks

Concessions made by workers to management, often in the form of reduced wages, benefits, or working conditions, typically in exchange for job security.

Employers

Individuals or entities that hire and provide work to employees, offering payment for services or labor performed.

Lockout

An employment and negotiation strategy in which an employer prevents employees from working during a dispute, aiming to pressure the union into concessions.