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

Juan Dolado, Marcel Jansen and Juan F Jimeno

No 2003-21, Working Papers from FEDEA

Abstract: This paper considers a matching model with heterogenous 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.

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Related works:
Journal Article: On-the-Job Search in a Matching Model with Heterogeneous Jobs and Workers (2009)
Journal Article: On‐the‐Job Search in a Matching Model with Heterogeneous Jobs and Workers (2009)
Working Paper: On the job search in a matching model with heterogeneous jobs and workers (2008)
Working Paper: On-the-Job Search in a Matching Model with Heterogeneous Jobs and Workers (2003)
Working Paper: On-the-Job Search in a Matching Model with Heterogenous Jobs and Workers (2003)
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