Matching Workers and Jobs: Cyclical Fluctuations in Match Quality

Audra Bowlus (abowlus@uwo.ca)

Journal of Labor Economics, 1995, vol. 13, issue 2, 335-50

Abstract: Using National Longitudinal Survey of Youth data on tenure and wages, this article analyzes the extent to which the level of job mismatching varies over the business cycle and how it is dealt with by the labor market. The author finds significant cyclical variation in job match quality and an internalization of the variation by the labor market through wages. Mismatching occurs more during recessions but is primarily captured in starting wages. The evidence suggests the cyclical phenomenon is one of general mismatching rather than an increased number of stopgap jobs during recessions. Copyright 1995 by University of Chicago Press.

Date: 1995
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