On the Job Search in a Matching Model with Heterogeneous Jobs and Workers

48 Pages Posted: 3 Jul 2008

See all articles by Juan Jose Dolado

Juan Jose Dolado

Universidad Carlos III de Madrid - Department of Economics

Marcel Jansen

Charles III University of Madrid - Department of Economics; IZA Institute of Labor Economics

Juan F. Jimeno

Banco de España - Research Department; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 3, 2008

Abstract

This paper examines the effects of transitory skill mismatch in a matching model with heterogeneous jobs and workers. In our model, some high-educated workers may accept unskilled jobs for which they are over-qualified but are allowed to engage in on-the-job search in pursuit of a better job. We show that this feature has relevant implications for the set of potential equilibria, the unemployment rates of the different types of workers, the degree of wage inequality, and the response of the labour market to shifts in the demand and supply of skills.

Keywords: on-the-job search, skills, unemployment, wage inequality

JEL Classification: J1, J24, J41

Suggested Citation

Dolado, Juan Jose and Jansen, Marcel and Jimeno, Juan F., On the Job Search in a Matching Model with Heterogeneous Jobs and Workers (July 3, 2008). Banco de Espana Working Paper No. 0813, Available at SSRN: https://ssrn.com/abstract=1155069 or http://dx.doi.org/10.2139/ssrn.1155069

Juan Jose Dolado (Contact Author)

Universidad Carlos III de Madrid - Department of Economics ( email )

HOME PAGE: http://www.eco.uc3m.es/english/staff/

Marcel Jansen

Charles III University of Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain
+34 91 624 5740 (Phone)
+34 91 624 9875 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Juan F. Jimeno

Banco de España - Research Department ( email )

Alcala 48
28014 Madrid
Spain

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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