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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Volume (Year): 68 (2001) Issue (Month): 3 (July) Pages: 593-612 Download reference. The following formats are available: HTML
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Bruno Decreuse, 2008.
"Choosy Search And The Mismatch Of Talents,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 1067-1089, 08.
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