On-the-Job Search in a Matching Model with Heterogenous Jobs and Workers

By Juan J. Dolado, M. Jansen, J. F. Jimeno. Social Science Research Network, 2003

199 citations recorded by the source corpus.

This paper considers a matching model with heterogeneous jobs (unskilled and skilled) and workers (low- and high-educated) which allows for on-the-job search by mismatched workers. The latter are high-educated workers who transitorily accept unskilled jobs and continue to search for skilled jobs. Our findings show that on-the-job search introduces an additional source of between- and within-group wage inequality. Furthermore, the higher quit rate of mismatched workers exerts a negative externality on unskilled jobs and weakens the labour market position of low-educated workers. This last feature changes the effects of skill-biased technological change and it alters the response of the labour market to shifts in the skill distribution.

Subfields: Economics and Econometrics, Media Technology

View Paper: https://www.semanticscholar.org/paper/45bc55c8bb43484e72ec75205e4637e7a48e6915

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In Economics and Econometrics

  1. Dieter Verhaest
  2. Stijn Baert
  3. Bart Cockx
  4. R. Velden

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