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A Search Version of the Roy Model

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Author Info
Michael Sattinger

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Abstract

This paper considers the decisions of workers to search in different labor markets, in analogy to Roy’s model of sectoral selection. In the basic model, a worker can search in one labor market or another but not both. With non-pecuniary benefits, a worker chooses the labor market offering the highest reservation utility level. Conditions for simultaneous search in two markets are also derived under the assumption that workers suffer a reduction in wage offers. Decisions of where to search are relevant to self-selection into sectors and self- selection biases, the formation of interview networks, and generation of overlapping markets.

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Paper provided by University at Albany, SUNY, Department of Economics in its series Discussion Papers with number 03-08.

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Date of creation: 2003
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Handle: RePEc:nya:albaec:03-08

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Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
Phone: (518) 442-4735
Fax: (518) 442-4736

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Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
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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.:
  1. Gould, John P, 1978. "Inventories and Stochastic Demand: Equilibrium Models of the Firm and Industry," Journal of Business, University of Chicago Press, vol. 51(1), pages 1-42, January. [Downloadable!] (restricted)
  2. Dale T. Mortensen & Randall Wright, 2002. "Competitive Pricing and Efficiency in Search Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 1-20, February. [Downloadable!] (restricted)
  3. Robert Shimer & Lones Smith, 2000. "Assortative Matching and Search," Econometrica, Econometric Society, vol. 68(2), pages 343-370, March.
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  4. Robert Shimer, 2001. "The Assignment of Workers to Jobs In an Economy with Coordination Frictions," NBER Working Papers 8501, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Moen, Espen R, 1997. "Competitive Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 385-411, April.
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  6. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December. [Downloadable!] (restricted)
  7. Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers 2053, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Shi, Shouyong, 2001. "Frictional Assignment. I. Efficiency," Journal of Economic Theory, Elsevier, vol. 98(2), pages 232-260, June. [Downloadable!] (restricted)
  9. Carlton, Dennis W, 1978. "Market Behavior with Demand Uncertainty and Price Inflexibility," American Economic Review, American Economic Association, vol. 68(4), pages 571-87, September. [Downloadable!] (restricted)
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  1. Pietro Garibaldi & Etienne Wasmer, . "Equilibrium Unemployment in a Model of Imperfect Labour Market," Working Papers 248, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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  2. Garibaldi, Pietro & Wasmer, Etienne, 2003. "Equilibrium Employment in a Model of Imperfect Labor Markets," IZA Discussion Papers 950, Institute for the Study of Labor (IZA). [Downloadable!]
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