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On the job search in a matching model with heterogeneous jobs and workers

Author

Listed:
  • Juan J. Dolado

    (Universidad Carlos III de Madrid)

  • Marcel Jansen

    (Universidad Carlos III de Madrid)

  • Juan F. Jimeno

    (Banco de España)

Abstract

This paper examines the effects of transitory skill mismatch in a matching model with heterogeneous jobs and workers. In our model, some high-educated workers may accept unskilled jobs for which they are over-qualified but are allowed to engage in on-the-job search in pursuit of a better job. We show that this feature has relevant implications for the set of potential equilibria, the unemployment rates of the different types of workers, the degree of wage inequality, and the response of the labour market to shifts in the demand and supply of skills.

Suggested Citation

  • Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2008. "On the job search in a matching model with heterogeneous jobs and workers," Working Papers 0813, Banco de España.
  • Handle: RePEc:bde:wpaper:0813
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    References listed on IDEAS

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    More about this item

    Keywords

    on-the-job search; skills; unemployment; wage inequality;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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