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A Matching Model of Crowding-Out and On-the-Job Search (with an application to Spain)

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  • Juan J. Dolado
  • Marcel Jansen
  • Juan F. Jimeno

Abstract

This paper considers a matching model of heterogenous workers and jobs which includes on-the-job search. High-educated workers transitorily accept unskilled jobs and continue to search for skilled jobs. We study the implications of this model for the unemployment rates of high and low-educated workers, for the share of mismatched workers and wage inequality both within and between skill groups. The model is used to shed light on the Spanish experience following a large educational upgrading since the mid-eighties.

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Paper provided by FEDEA in its series Working Papers with number 2002-16.

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Handle: RePEc:fda:fdaddt:2002-16

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  1. Acemoglu, D., 1996. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 96-15, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Dolado, Juan J. & Jimeno, Juan F., 1997. "The causes of Spanish unemployment: A structural VAR approach," European Economic Review, Elsevier, Elsevier, vol. 41(7), pages 1281-1307, July.
  3. Dolado, Juan J. & Felgueroso, Florentino & Jimeno, Juan F., 2000. "Youth labour markets in Spain: Education, training, and crowding-out," European Economic Review, Elsevier, Elsevier, vol. 44(4-6), pages 943-956, May.
  4. Arellano, Manuel & Bentolila, Samuel & Bover, Olympia, 2001. "The Distribution of Earnings in Spain During the 1980s: The Effects of Skill, Unemployment and Union Power," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2770, C.E.P.R. Discussion Papers.
  5. 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, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  6. James Albrecht & Susan Vroman, 2000. "A Matching Model with Endogenous Skill Requirements," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 0774, Econometric Society.
  7. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, Elsevier, vol. 12(1), pages 113-132, April.
  8. Cristina Fernández, 2006. "The Role of Education vis-a-vis Job Experience in Explaining the Transitions to Employment in the Spanish Youth Labour Market," Spanish Economic Review, Springer, Springer, vol. 8(3), pages 161-187, September.
  9. Mortensen, Dale T & Pissarides, Christopher A, 1999. "Unemployment Responses to 'Skill-Biased' Technology Shocks: The Role of Labour Market Policy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(455), pages 242-65, April.
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Cited by:
  1. Michael Sattinger, 2003. "Overlapping Labour Markets," Discussion Papers, University at Albany, SUNY, Department of Economics 03-06, University at Albany, SUNY, Department of Economics.
  2. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, . "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Working Papers, FEDEA 2003-14, FEDEA.
  3. Cristina Fernández, 2006. "The Role of Education vis-a-vis Job Experience in Explaining the Transitions to Employment in the Spanish Youth Labour Market," Spanish Economic Review, Springer, Springer, vol. 8(3), pages 161-187, September.
  4. Blázquez Cuesta, Maite & Jansen, Marcel, 2003. "Efficiency in a Matching Model with Heterogeneous Agents: Too Many Good or Bad Jobs?," IZA Discussion Papers 968, Institute for the Study of Labor (IZA).
  5. Olivier, Pierrard & Henri R., Sneessens, 2002. "Low-Skilled Unemployment, Biased Technological Shocks and Job Competition," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2003014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 03 May 2002.
  6. Eva, MORENO GALBIS, 2002. "Changes in the skill structure of the labour force. An empirical application to the Spanish case," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2002035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  7. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding are Legal Limits? Transitions from Temporary to Permanent Work in Spain," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3931, C.E.P.R. Discussion Papers.
  8. Eva, MORENO-GALBIS, 2004. "Unemployment and Endogenous Growth with Capital-Skill Complementarity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2004001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  9. Carmen Garcia Prieto & Angel Martin Roman & Carlos Perez Dominguez, 2005. "Actual and Potential Returns to Schooling in Spain," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(4), pages 387-407.
  10. E. Moreno-Galbis & H.R. Sneessens, 2007. "Low-skilled unemployment, capital-skill complementarity and embodied technical progress," Recherches économiques de Louvain, De Boeck Université, De Boeck Université, vol. 73(3), pages 241-272.
  11. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve: Some Macro Evidence for Italy," Working Papers, RAND Corporation Publications Department 436, RAND Corporation Publications Department.

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