Matching Skill and Tasks: Cyclical Fluctuations in the Overqualification of New Hires
This paper demonstrates that downturns can affect job match quality by influencing job tasks. Cognitive and manual task shares and education-based overqualification measures are generated from Canada’s Labour Force Survey and the O*NET database. Manual tasks are shown to be countercyclical among newly formed jobs. Task measures also displace the predictive power of labor market conditions for the probability of overqualification. The paper develops and calibrates a search model with two-sided heterogeneity that can account for these empirical findings. Predictions differ from prior models because production processes and vacancy posting costs differ. A single percentage point increase in unemployment is accompanied by an increase in the share of manual task vacancies by 6 percentage points, leading to an increase in overqualification by 3.5 percentage points. A policy experiment shows that increased unemployment benefits may not reduce overqualification.
|Date of creation:||Apr 2016|
|Contact details of provider:|| Postal: Via Patara, 3, 47921 Rimini (RN)|
Web page: http://www.rcfea.org
More information through EDIRC
References listed on IDEAS
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.:
- Bouckaert, J., 1995.
"Momopolistic Competition with a Mail Order Business,"
9562, Tilburg - Center for Economic Research.
- Bouckaert, Jan, 2000. "Monopolistic competition with a mail order business," Economics Letters, Elsevier, vol. 66(3), pages 303-310, March.
- Volker Nocke, 2006.
"A Gap for Me: Entrepreneurs and Entry,"
Journal of the European Economic Association,
MIT Press, vol. 4(5), pages 929-956, 09.
- Volker Nocke, 2003. "A Gap for Me: Entrepreneurs and Entry," PIER Working Paper Archive 03-019, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Volker Nocke, 2003. "A Gap for Me: Entrepreneurs and Entry," PIER Working Paper Archive 05-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 29 Sep 2005.
- Joris Pinkse & Margaret E. Slade & Craig Brett, 2002. "Spatial Price Competition: A Semiparametric Approach," Econometrica, Econometric Society, vol. 70(3), pages 1111-1153, May.
- Qihong Liu & Konstantinos Serfes, 2005. "Imperfect price discrimination, market structure, and efficiency," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1191-1203, November.
- Yongmin Chen & Michael H. Riordan, 2007. "Price and Variety in the Spokes Model," Economic Journal, Royal Economic Society, vol. 117(522), pages 897-921, 07.
- S. P. Anderson & A. de Palma, 1997.
"From local to global competition,"
THEMA Working Papers
97-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Anderson, Simon P & de Palma, André, 1996. "From Local to Global Competition," CEPR Discussion Papers 1328, C.E.P.R. Discussion Papers.
- Simon P. Anderson & Andre de Palma, 1998. "From Local to Global Competition," Virginia Economics Online Papers 344, University of Virginia, Department of Economics.
- Bester,Helmut, 1988.
"Bertrand equilibrium in a differentiated duopoly,"
Discussion Paper Serie A
209, University of Bonn, Germany.
- d'ASPREMONT, Claude & GABSZEWICZ, Jean J. & THISSE, Jacques-François, "undated".
"On Hotelling's "Stability in competition","
CORE Discussion Papers RP
385, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Catherine Schaumans & Frank Verboven, 2008.
"Entry and regulation: evidence from health care professions,"
RAND Journal of Economics,
RAND Corporation, vol. 39(4), pages 949-972.
- Schaumans, Catherine & Verboven, Frank, 2006. "Entry and Regulation - Evidence from Health Care Professions," CEPR Discussion Papers 5482, C.E.P.R. Discussion Papers.
- Claudio A. Piga, 1998. "A Dynamic Model of Advertising and Product Differentiation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(5), pages 509-522, October.
- Rothschild, R, 1982. "Competitive Behaviour in Chain-Linked Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 31(1-2), pages 57-67, September.
- Spulber, Daniel F, 1995. "Bertrand Competition When Rivals' Costs Are Unknown," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 1-11, March.
- Anthony Creane, 2007. "Note on uncertainty and socially excessive entry," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(4), pages 329-334.
- Eric J. Bartelsman & Mark Doms, 2000.
"Understanding productivity: lessons from longitudinal microdata,"
Finance and Economics Discussion Series
2000-19, Board of Governors of the Federal Reserve System (U.S.).
- Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
- Eaton, B Curtis & Lipsey, Richard G, 1978. "Freedom of Entry and the Existence of Pure Profit," Economic Journal, Royal Economic Society, vol. 88(351), pages 455-469, September.
- Waterson, Michael, 1990. "Product Differentiation and Profitability: An Asymmetric Model," Journal of Industrial Economics, Wiley Blackwell, vol. 39(2), pages 113-130, December.
- Aiura, Hiroshi & Sato, Yasuhiro, 2008. "Welfare properties of spatial competition with location-dependent costs," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 32-48, January.
- Montagna, Catia, 1995. "Monopolistic Competition with Firm-Specific Costs," Oxford Economic Papers, Oxford University Press, vol. 47(2), pages 318-328, April.
- von Ungern-Sternberg, Thomas, 1991. "Monopolistic Competition on the Pyramid," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 355-368, June.
When requesting a correction, please mention this item's handle: RePEc:rim:rimwps:16-08. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marco Savioli)
If references are entirely missing, you can add them using this form.