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Choosy search and the mismatch of talents

Bruno Decreuse

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Composition effects; Heterogeneity; Segmented markets; Efficiency (search for similar items in EconPapers)
JEL-codes: D62 D83 J64 (search for similar items in EconPapers)
Date: 2003, Revised 2007-02
New Economics Papers: this item is included in nep-dge and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

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https://mpra.ub.uni-muenchen.de/3636/1/MPRA_paper_3636.pdf original version (application/pdf)

Related works:
Journal Article: CHOOSY SEARCH AND THE MISMATCH OF TALENTS (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:3636

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