Munich Personal RePEc Archive

Choosy search and the mismatch of talents

Decreuse, Bruno (2003): Choosy search and the mismatch of talents.

[img]
Preview
PDF
MPRA_paper_3636.pdf

Download (301Kb) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.