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On the job search in a matching model with heterogeneous jobs and workers

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Author Info

  • Juan J. Dolado

    ()
    (Universidad Carlos III de Madrid)

  • Marcel Jansen

    ()
    (Universidad Carlos III de Madrid)

  • Juan F. Jimeno

    ()
    (Banco de España)

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.

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File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/08/Fic/dt0813e.pdf
File Function: First version, July 2008
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Bibliographic Info

Paper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0813.

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Length: 48 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:bde:wpaper:0813

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

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