Decreuse, Bruno (2003): Choosy search and the mismatch of talents.
Download (308kB) | Preview
This paper 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.
|Item Type:||MPRA Paper|
|Original Title:||Choosy search and the mismatch of talents|
|Keywords:||Composition effects; Heterogeneity; Segmented markets; Efficiency|
|Subjects:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
|Depositing User:||Bruno Decreuse|
|Date Deposited:||20. Jun 2007|
|Last Modified:||04. Mar 2015 00:51|
Albrecht, J., Gautier, P., Vroman, S., 2006. Equilibrium directed search with multiple applications. Review of Economic Studies 73, 869-891 Barlevy, G., 2002. The sullying effect of recessions. Review of Economic Studies 69, 65-96 Burda, M., Profit, S., 1996. Matching across space: evidence on mobility in Czech Republic. Labour Economics 3, 255-278 Charlot, O., Decreuse, B., 2005. Self-selection in education with matching frictions. Labour Economics 12, 251-267 Charlot, O., Decreuse, B., Granier, P., 2005. Adaptability, productivity and the educational incentives in a matching model. European Economic Review 49, 1007- 1032 Diamond, P., 1982. Wage determination and efficiency in search equilibrium. Review of Economic Studies 49, 217-227 Gautier, P., Teulings, C.N., 2004. The right man for the job. Review of Economic Studies 71-2, 553-580 Hosios, A., 1990. On the efficiency of matching and related models of search and unemployment. Review of Economic Studies 57, 279-298 Kiyotaki, N., Wright, R., 1993. A search-theoretic approach to monetary Economics. American Economic Review 83, 63-77 Lockwood, B., 1986. Transferable skills, job matching, and the inefficiency of the natural rate of unemployment. Economic Journal 96, 961-974 Marimon, R., Zilibotti, F., 1999. Unemployment versus mismatch of talents: reconsidering unemployment benefits. Economic Journal 109, 266-291 Moscarini, G., 2001. Excess worker reallocation. Review of Economic Studies 68, 593-612 Pissarides, C., 1985. Short run equilibrium dynamics of unemployment, vacancies and real wages. American Economic Review 75, 676-690 Pissarides, C., 1986. Trade unions and the inefficiency of the natural rate of unemployment. Journal of Labor Economics 4, 582-595 Pissarides, C., 2000. Equilibrium unemployment theory. MIT Press Salop, S., 1979. Monopolistic competition with outside goods. Bell Journal of Economics 10, 141-156 Shi, S., 1997. Money and specialization. Economic Theory 10, 99-133 21 Shi, S., 2001. Frictional assignment. I. Efficiency. Journal of Economic Theory 98, 232-260 Shimer, R., 2005. The assignment of workers to jobs in an economy with coordination frictions. Journal of Political Economy 113, 996-1025 Shimer, R., Smith, L., 2001. Matching, search and heterogeneity. Advances in Macroeconomics (B.E. Journal in Macroeconomics) 1, article 5 Uren, L., 2006. The allocation of labour and endogenous search decisions. Topics in Macroeconomics (B.E. Journal in Macroeconomics) 6, article 13