Download This PaperOn the Job Search in a Matching Model with Heterogeneous Jobs and Workers
48 Pages Posted: 3 Jul 2008
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On the Job Search in a Matching Model with Heterogeneous Jobs and Workers
On-the-Job Search in a Matching Model with Heterogeneous Jobs and Workers
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: Suggested Citation
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
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