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Excess Worker Reallocation

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Author Info
Moscarini, Giuseppe

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Abstract

Workers face a trade-off between macroeconomic and individual incentives to work in different occupations/industries; namely, between search frictions and personal comparative advantages. Workers endowed with heterogeneous multi-dimensional skills search for jobs that require different skill combinations. In equilibrium, specialized individuals contact few, selected types of vacancies, where they are likely to be hired; those with weak comparative advantages are seldom chosen among competing applicants, thus seek any job type. In a tight labour market, comparative advantages dominate waiting costs: offsetting labour mobility across industries/occupations--Excess Worker Reallocation--is lower and matches are more successful, consistently with direct and indirect evidence. Copyright 2001 by The Review of Economic Studies Limited

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 68 (2001)
Issue (Month): 3 (July)
Pages: 593-612
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Handle: RePEc:bla:restud:v:68:y:2001:i:3:p:593-612

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  1. Demiralp, Berna, 2007. "Occupational Self-Selection in a Labor Market with Moral Hazard," MPRA Paper 2314, University Library of Munich, Germany. [Downloadable!]
  2. Yashiv, Eran, 2003. "Self-Selection of Migrant Workers: Migration Premium and (no) Returns to Skills," CEPR Discussion Papers 4156, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Decreuse, Bruno, 2003. "Choosy search and the mismatch of talents," MPRA Paper 3636, University Library of Munich, Germany, revised Feb 2007. [Downloadable!]
    Other versions:
  4. Pieter A. Gautier & Coen N. Teulings & Aico van Vuuren, 2005. "On-The-Job Search and Sorting," IZA Discussion Papers 1687, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Giuseppe Moscarini & Francis Vella, 2002. "Aggregate worker reallocation and occupational mobility in the United States: 1971-2000," IFS Working Papers W02/18, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  6. Decreuse, Bruno & Zylberberg, André, 2006. "Job search with ubiquity and the wage distribution," MPRA Paper 3630, University Library of Munich, Germany, revised May 2007. [Downloadable!]
    Other versions:
  7. Postel-Vinay, Fabien & Robin, Jean-Marc, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," CEPR Discussion Papers 3548, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Olivier Charlot & Bruno Decreuse, 2006. "Over-education for the rich vs under-education for the poor: a search-theoretic microfoundation," Working Papers halshs-00409583_v1, HAL. [Downloadable!]
  9. Postel Vinay Fabien & Robin Jean Marc, 2000. "Wage Dispersion with Heterogeneous Firm Technologies and Worker Abilities: An Equilibrium Job Search Model for Matched Employer-Employee Data," Research Unit Working Papers 0008, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
  10. Charlot, Olivier & Decreuse, Bruno, 2006. "Over-education for the rich, under-education for the poor: a search-theoretic microfoundation," MPRA Paper 3624, University Library of Munich, Germany, revised Apr 2007. [Downloadable!]
  11. Michele Pellizzari, 2005. "Employers' Search and the Efficiency of Matching," IZA Discussion Papers 1862, Institute for the Study of Labor (IZA). [Downloadable!]
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