Work Hour Mismatch and On-the-job Search

Keisuke Kawata

No 3-6, IDEC DP2 Series from Hiroshima University, Graduate School for International Development and Cooperation (IDEC)

Abstract: This paper explores an on-the-job search model with wage bargaining and mismatch. It considers two types of jobs and workers, and the instantaneous value of the job-worker match depends on their type. The most important assumption is that while the job type is fixed throughout its life, the worker type changes in accordance with a stochastic process. This paper shows that although the workers turnover decision is privately efficient, this decision may be socially inefficient because of the hold-up problem.

Keywords: On-the-job search; Wage bargaining; Mismatch; Holdup problem (search for similar items in EconPapers)
JEL-codes: J63 J81 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-10
New Economics Papers: this item is included in nep-dge and nep-lab
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Related works:
Journal Article: Work hour mismatches and on-the-job search (2015)
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