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A Theory of Signalling during Job Search, Employment Efficiency, and "Stigmatised" Jobs

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  • McCormick, Barry
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    Abstract

    This paper discusses why redundant skilled workers may be reluctant to accept interim unskilled jobs. If skilled work is more satisfying or less arduous for highly productive workers, then such workers invest more in moving quickly between skilled jobs. Thus, high productivity workers tend to search on the job, and if unemployed will specialize in job search, rather than take an interim position. If individual differences in productivity are known to the worker, but not the potential employer, then search strategy may be used as a productivity signal, with more than the efficient proportion of workers searching on the job and too few accepting interim unskilled jobs. Optimal policy requires a subsidy on interim unskilled jobs. Copyright 1990 by The Review of Economic Studies Limited.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Review of Economic Studies.

    Volume (Year): 57 (1990)
    Issue (Month): 2 (April)
    Pages: 299-313

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    Handle: RePEc:bla:restud:v:57:y:1990:i:2:p:299-313

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    Cited by:
    1. Berg, Gerard J. van den & Gautier, Pieter A. & Ours, Jan C., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Agenor, Pierre-Richard, 2003. "The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms," Policy Research Working Paper Series 3067, The World Bank.
    3. Gottfries, N. & Mccormick, B., 1990. "Discrimination And Open Unemployment In A Segmented Labour Market," Papers 460, Stockholm - International Economic Studies.
    4. B. Cockx & M. Picchio, 2011. "Scarring Effects of Remaining Unemployed for Long-Term Unemployed School-Leavers," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/731, Ghent University, Faculty of Economics and Business Administration.
    5. B. Cockx & C. Goebel & S. Robin, 2009. "Is income support for part-time workers a steppingstone to regular jobs? An application to young long-term unemployed women," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/561, Ghent University, Faculty of Economics and Business Administration.
    6. Wapler, Rüdiger, 2000. "Unions, monopolistic competition and unemployment," Tübinger Diskussionsbeiträge 180, University of Tübingen, School of Business and Economics.
    7. Mosthaf, Alexander & Schank, Thorsten & Schnabel, Claus, 2009. "Low-wage employment versus unemployment: which one provides better prospects for women?," Discussion Papers 65, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    8. Wapler, Rüdiger, 2001. "Unions, efficiency wages, and unemployment," Tübinger Diskussionsbeiträge 210, University of Tübingen, School of Business and Economics.
    9. Schaik, A.B.T.M. van & Groot, H.L.F. de, 2000. "Unemployment, growth and efficiency wages," Open Access publications from Tilburg University urn:nbn:nl:ui:12-83963, Tilburg University.
    10. Chantal Cases, 1994. "Durées de chômage et comportements d'offre de travail : une revue de la littérature," Économie et Prévision, Programme National Persée, vol. 113(2), pages 155-170.

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