Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20125
Authors: 
Dolado, Juan José
Jansen, Marcel
Jimeno, Juan F.
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 886
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.
Subjects: 
job search
skills
unemployment
wage inequality
JEL: 
J63
J64
Document Type: 
Working Paper

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