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RDP 1999-07: Job-Search Methods, Neighbourhood Effects and the Youth Labour Market
Equation (A8)
∂
U
n
∂
c
n
=
(
r
+
s
)
σ
c
(
c
n
;
z
n
)
+
h
(
θ
)
w
r
(
r
+
s
+
f
(
u
n
)
+
c
n
h
(
θ
)
)
−
(
r
+
s
)
σ
(
c
n
;
z
n
)
+
(
f
(
u
n
)
+
c
n
h
(
θ
)
)
w
r
(
r
+
s
+
f
(
u
n
)
+
c
n
h
(
θ
)
)
2
•
h
(
θ
)
=
0
⇒
(
r
+
s
+
f
(
u
n
)
+
c
n
h
(
θ
)
)
•
σ
c
(
c
n
;
z
n
)
+
(
w
−
σ
(
c
n
;
z
n
)
)
•
h
(
θ
)
=
0
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