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

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Author Info

  • Dolado, Juan J.

    ()
    (Universidad Carlos III de Madrid)

  • Jansen, Marcel

    ()
    (Universidad Autónoma de Madrid)

  • Jimeno, Juan F.

    ()
    (Bank of Spain)

Abstract

This paper considers a matching model of heterogenous workers and jobs which includes onthe- 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 612.

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Length: 39 pages
Date of creation: Oct 2002
Date of revision:
Publication status: published in: Economic Journal, (2009), 119, 200-228.
Handle: RePEc:iza:izadps:dp612

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Keywords: on-the-job search; matching; crowding-out; unemployment;

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References

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  1. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, American Economic Association, vol. 89(5), pages 1259-1278, December.
  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. Berg, G. van den & Gautier, P.A. & Ours, J.C. van & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper, Tilburg University, Center for Economic Research 98.104, Tilburg University, Center for Economic Research.
  4. 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.
  5. James Albrecht & Susan Vroman, 2002. "A Matching Model with Endogenous Skill Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
  6. 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.
  7. 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.
  8. Olympia Bover & Samuel Bentolila & Manuel Arellano, 2000. "The Distribution of Earnings in Spain During the 1980s: the Effects of Skill, Unemployment, and Union Power," Banco de Espa�a Working Papers, Banco de Espa�a 0015, Banco de Espa�a.
  9. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, Elsevier, vol. 12(1), pages 113-132, April.
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Citations

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Cited by:
  1. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve. Some Macro Evidence for Italy," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 168, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  2. Michael Sattinger, 2003. "Overlapping Labour Markets," Discussion Papers, University at Albany, SUNY, Department of Economics 03-06, University at Albany, SUNY, Department of Economics.
  3. Maite Blázquez & Marcel Jansen, 2003. "Efficiency In A Matching Model With Heterogeneous Agents: Too Many Good Or Bad Jobs?," Economics Working Papers, Universidad Carlos III, Departamento de Economía we035019, Universidad Carlos III, Departamento de Economía.
  4. Carmen García Prieto & Angel Martín Román & Carlos Pérez Domínguez, . "Actual and potential returns to schooling in Spain," Studies on the Spanish Economy, FEDEA 157, FEDEA.
  5. Hernanz, Virginia & Jimeno, Juan Francisco & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3724, C.E.P.R. Discussion Papers.
  6. 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.
  7. 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.
  8. 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).
  9. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding Are Legal Limits? Transitions from Temporary to Permanent Work in Spain," IZA Discussion Papers, Institute for the Study of Labor (IZA) 782, Institute for the Study of Labor (IZA).
  10. 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).
  11. Pierrard, Olivier & Sneessens, Henri R., 2003. "Low-Skilled Unemployment, Biased Technological Shocks and Job Competition," IZA Discussion Papers, Institute for the Study of Labor (IZA) 784, Institute for the Study of Labor (IZA).

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