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On-the-Job Search and Sorting Author info | Abstract | Publisher info | Download info | Related research | Statistics Pieter A. Gautier () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
Coen N. Teulings () (SEO Economic Research, Universiteit van Amsterdam)
Aico van Vuuren () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
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We characterize the equilibrium of a search model with a continuum of job and worker types, wage bargaining, free entry of vacancies and on-the-job search. Although on-the-job search reduces the output loss due to frictions, it increases the wage differentials. The decentralized economy with monopsonistic wage setting yields too many vacancies and hence too low unemployment compared to first best, due to a business-stealing externality. Raising workers' bargaining power resolves this inefficiency. Unemployment benefits are a second best alternative to this policy.
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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number
05-070/3.
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Date of creation: 24 Jun 2005Date of revision:
Handle: RePEc:dgr:uvatin:20050070Contact details of provider: Web page: http://www.tinbergen.nl/
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Keywords: assignment on-the job search wage bargaining sorting Other versions of this item:
Paper 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!] Gautier, Pieter A & Teulings, Coen N & van Vuuren, Aico, 2006.
"On-the-Job Search and Sorting ,"
CEPR Discussion Papers
5575, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Pieter A. Gautier & Coenraad N. Teulings & Aico van Vuuren, 2005.
"On-the-Job Search and Sorting ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] Find related papers by JEL classification: E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Moscarini, Giuseppe, 2001.
"Excess Worker Reallocation ,"
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Other versions: Marimon, R. & Zilibotti, F., 1998.
"Unemployment vs. Mismatch of Talents ,"
Papers
661, Stockholm - International Economic Studies.
Espen R. Moen & Asa Rosén, 2004.
"Does Poaching Distort Training? ,"
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Other versions:
Moen, Espen R. & Rosén, Åsa, 2002.
"Does poaching distort training? ,"
Working Paper Series
4/2002, Swedish Institute for Social Research.
[Downloadable!] Moen, Espen R & Rosen, Asa, 2002.
"Does Poaching Distort Training? ,"
CEPR Discussion Papers
3468, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gautier, Pieter A & Teulings, Coen N, 2003.
"How Large are Search Frictions? ,"
CEPR Discussion Papers
3861, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Pieter A. Gautier & Coen A. Teulings, 2003.
"How large are Search Frictions? ,"
Tinbergen Institute Discussion Papers
03-026/3, Tinbergen Institute, revised 22 Aug 2005.
[Downloadable!] Pieter Gautier & Coen Teulings, 2005.
"How Large are Search Frictions ,"
2005 Meeting Papers
175, Society for Economic Dynamics.
[Downloadable!] Gautier, Pieter A & Teulings, Coen N, 2005.
"How Large are Search Frictions? ,"
CEPR Discussion Papers
5229, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Pieter A. Gautier & Coen N. Teulings, 2006.
"How Large are Search Frictions? ,"
Journal of the European Economic Association ,
MIT Press, vol. 4(6), pages 1193-1225, December.
[Downloadable!] (restricted) Giuseppe Moscarini, 2005.
"Job Matching and the Wage Distribution ,"
Econometrica ,
Econometric Society, vol. 73(2), pages 481-516, 03.
[Downloadable!] (restricted)
Gautier, Pieter A, 2002.
"Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Workers ,"
Economica ,
London School of Economics and Political Science, vol. 69(273), pages 21-40, February.
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Dixit, Avinash K & Stiglitz, Joseph E, 1977.
"Monopolistic Competition and Optimum Product Diversity ,"
American Economic Review ,
American Economic Association, vol. 67(3), pages 297-308, June.
[Downloadable!] (restricted)
Other versions: Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover ,"
Journal of Political Economy ,
University of Chicago Press, vol. 87(5), pages 972-90, October.
[Downloadable!] (restricted)
Other versions: Pissarides, Christopher A, 1994.
"Search Unemployment with On-the-Job Search ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 61(3), pages 457-75, July.
[Downloadable!] (restricted)
Other versions: Barlevy, Gadi, 2002.
"The Sullying Effect of Recessions ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 69(1), pages 65-96, January.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Gautier, Pieter A & Teulings, Coen N, 2005.
"How Large are Search Frictions? ,"
CEPR Discussion Papers
5229, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Pieter A. Gautier & Coen A. Teulings, 2003.
"How large are Search Frictions? ,"
Tinbergen Institute Discussion Papers
03-026/3, Tinbergen Institute, revised 22 Aug 2005.
[Downloadable!] Gautier, Pieter A & Teulings, Coen N, 2003.
"How Large are Search Frictions? ,"
CEPR Discussion Papers
3861, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Pieter Gautier & Coen Teulings, 2005.
"How Large are Search Frictions ,"
2005 Meeting Papers
175, Society for Economic Dynamics.
[Downloadable!] Pieter A. Gautier & Coen N. Teulings, 2006.
"How Large are Search Frictions? ,"
Journal of the European Economic Association ,
MIT Press, vol. 4(6), pages 1193-1225, December.
[Downloadable!] (restricted) Gadi Barlevy & H. N. Nagaraja, 2006.
"Identification of search models with initial condition problems ,"
Working Paper Series
WP-06-03, Federal Reserve Bank of Chicago.
[Downloadable!]
Other versions:
Gadi Barlevy & H.N. Nagaraja, 2006.
"Identification of Search Models with Initial Condition Problems ,"
NBER Working Papers
12166, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Gadi Barlevy & H. N. Nagaraja, 2006.
"Identification of Search Models with Initial Condition Problems ,"
2006 Meeting Papers
4, Society for Economic Dynamics.
Gadi Barlevy & H. N. Nagaraja, 2006.
"Identification of Search Models with Initial Condition Problems ,"
IZA Discussion Papers
2061, Institute for the Study of Labor (IZA).
[Downloadable!]
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