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

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

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. van den Berg, G. & Gautier, P.A. & van Ours, J.C. & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper 98.104, Tilburg University, Center for Economic Research.
  2. 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, vol. 109(455), pages 242-65, April.
  3. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, vol. 89(5), pages 1259-1278, December.
  4. 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 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  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, vol. 43(1), pages 283-305, February.
  6. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, vol. 12(1), pages 113-132, April.
  7. 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 0015, Banco de Espa�a.
  8. repec:ner:tilbur:urn:nbn:nl:ui:12-91480 is not listed on IDEAS
  9. Dolado, Juan J. & Felgueroso, Florentino & Jimeno, Juan F., 2000. "Youth labour markets in Spain: Education, training, and crowding-out," European Economic Review, Elsevier, vol. 44(4-6), pages 943-956, May.
  10. Juan J. Dolado & Juan F. Jimeno, . "The causes of Spanish unemployment: A structural VAR apporach," Working Papers 96-19, FEDEA.
  11. 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, vol. 8(3), pages 161-187, September.
  12. Gautier, P.A. & van den Berg, G. & van Ours, J.C. & Ridder, G., 2002. "Worker turnover at the firm level and crowding out of lower educated workers," Other publications TiSEM 8ea33399-69d3-480a-a241-c, Tilburg University, School of Economics and Management.
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