CHOOSY SEARCH AND THE MISMATCH OF TALENTS

Bruno Decreuse

International Economic Review, 2008, vol. 49, issue 3, 1067-1089

Abstract: This article proposes a multi-sector matching model where workers have (symmetric) sector-specific skills and the search market is segmented by sector. Workers choose the range of markets they are willing to participate in. I identify a composition externality: Workers do not take into account the impact of their choice on sector-specific mean productivity among the pools of job-seekers. Consequently, workers prospect too many market segments, and there is room for public policy even when the so-called Hosios condition holds. Copyright © 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 2008
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Working Paper: Choosy search and the mismatch of talents (2007)
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