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

  • Dolado, Juan J.

    ()

    (European University Institute)

  • Jansen, Marcel

    ()

    (Universidad Autónoma de Madrid)

  • Jimeno, Juan F.

    ()

    (Bank of Spain)

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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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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  1. 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.
  2. Juan J. Dolado & Juan F. Jimeno, . "The causes of Spanish unemployment: A structural VAR apporach," Working Papers 96-19, FEDEA.
  3. 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.
  4. 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.
  5. Acemoglu, D., 1996. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," Working papers 96-15, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. James Albrecht & Susan Vroman, 2000. "A Matching Model with Endogenous Skill Requirements," Econometric Society World Congress 2000 Contributed Papers 0774, Econometric Society.
  7. 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.
  8. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, vol. 12(1), pages 113-132, April.
  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. 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.
  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.
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