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Matching Workers and Jobs: Cyclical Fluctuations in Match Quality

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  • Bowlus, Audra J

Abstract

Using National Longitudinal Survey of Youth data on tenure and wages, this article analyzes the extent to which the level of job mismatching varies over the business cycle and how it is dealt with by the labor market. The author finds significant cyclical variation in job match quality and an internalization of the variation by the labor market through wages. Mismatching occurs more during recessions but is primarily captured in starting wages. The evidence suggests the cyclical phenomenon is one of general mismatching rather than an increased number of stopgap jobs during recessions. Copyright 1995 by University of Chicago Press.

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  • Bowlus, Audra J, 1995. "Matching Workers and Jobs: Cyclical Fluctuations in Match Quality," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 335-350, April.
    • Handle: RePEc:ucp:jlabec:v:13:y:1995:i:2:p:335-50
    DOI: 10.1086/298377
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    References listed on IDEAS

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    1. Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-689, August.
    2. Diamond, Peter A, 1981. "Mobility Costs, Frictional Unemployment, and Efficiency," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 798-812, August.
    3. George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
    4. Robert E. Hall, 1991. "Labor Demand, Labor Supply, and Employment Volatility," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 17-62, National Bureau of Economic Research, Inc.
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