Working Paper: CEPR ID: DP3466
Authors: Juan José Dolado; Marcel Jansen; Juan F. Jimeno
Abstract: This Paper considers a matching model of heterogeneous 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 Codes: J41; J62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| high-educated workers taking unskilled jobs (F66) | crowding-out effect on low-educated workers (F66) |
| crowding-out effect on low-educated workers (F66) | negatively impacting their job finding rates (J68) |
| high-educated workers taking unskilled jobs (F66) | unemployment rate of low-educated workers (F66) |
| unemployment rate of low-educated workers (F66) | positively correlated with number of high-educated workers in unskilled jobs (J69) |
| introduction of on-the-job search by high-educated workers (J68) | increased wage inequality (J31) |