A Matching Model of Crowding-Out and On-the-Job Search (with an Application to Spain)

Dolado, Juan Jose; Jansen, Marcel; Jimeno, Juan F.

doi:10.2139/ssrn.343886

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A Matching Model of Crowding-Out and On-the-Job Search (with an Application to Spain)

38 Pages Posted: 11 Nov 2002

See all articles by Juan Jose Dolado

Juan Jose Dolado

Charles III University of Madrid - Department of Economics; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Marcel Jansen

Charles III University of Madrid - Department of Economics; IZA Institute of Labor Economics

Juan F. Jimeno

Banco de España - Research Department; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

There are 2 versions of this paper

Date Written: October 2002

Abstract

This paper considers a matching model of heterogenous workers and jobs which includes on-the-job search. High-educated workers transitorily accept unskilled jobs and continue to search for skilled jobs. We study the implications of this model for the unemployment rates of high and low-educated workers, for the share of mismatched workers and wage inequality both within and between skill groups. The model is used to shed light on the Spanish experience following a large educational upgrading since the mid-eighties.

Keywords: Crowding-out, Matching, On-the-job Search, Unemployment

JEL Classification: J41, J62

Suggested Citation: Suggested Citation

Dolado, Juan Jose and Jansen, Marcel and Jimeno, Juan F., A Matching Model of Crowding-Out and On-the-Job Search (with an Application to Spain) (October 2002). Available at SSRN: https://ssrn.com/abstract=343886 or http://dx.doi.org/10.2139/ssrn.343886