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

Juan Dolado, Marcel Jansen and Juan F Jimeno

No 886, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: skills; job search; wage inequality; unemployment (search for similar items in EconPapers)
JEL-codes: J63 J64 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2003-10
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (15)

Published - published in: Economic Journal, 2009, 119 (534), 200-228

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https://docs.iza.org/dp886.pdf (application/pdf)

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
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