Adaptability, productivity, and educational incentives in a matching model

Charlot, Olivier; Decreuse, Bruno; Granier, Pierre

doi:10.1016/j.euroecorev.2003.08.011

Cited by 37 publications

(21 citation statements)

References 22 publications

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“…I complement the study by additionally highlighting differences in the separation rates into unemployment between skill groups and the impact of those differences on sorting patterns. My finding that versatility is an important determinant of job mobility supports theoretical models that feature multidimensional skills (Charlot et al, 2005;Lise and Postel-Vinay, 2014). Furthermore, my empirical study is in line with theoretical models that stress the impact of versatility on both the job-finding rate and the separation rate into unemployment (Stijepic, 2015b,c).…”

supporting

confidence: 59%

Job Mobility and Sorting: Theory and Evidence

Stijepic

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractI derive a measure of job mobility that reflects the individual's ability to sort into the preferred jobs. In particular, the measure accounts for the negative effect of separations into unemployment on sorting. Relying on the Survey of Income and Program Participation, I find that educational attainment tends to have a strong positive effect on internal (i.e., within firms) and external (i.e., between firms) job mobility. General experience and occupation-specific human capital have only a limited effect on both internal and external mobility. The impact of being versatile on an individual's external job mobility is substantial and similar in magnitude as the effect of a college degree on a high school dropout's external mobility.

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confidence: 59%

Job Mobility and Sorting: Theory and Evidence

Stijepic

2015

SSRN Journal

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“…Under choosy search, there is no restriction on the number of submarkets that each worker may prospect, but the requirement that expected matching gains must be positive on each submarket. In a model where education determines the scope of individual skills, Charlot et al (2005) also assume that the search market is segmented by technology, and workers only participate in market segments for which they have the relevant skills. However, individual productivity only depends on the technology, and there is no composition externality in their paper.…”

Section: Introductionmentioning

confidence: 99%

“…Workers direct their search toward a particular market, but matching is random within this market. In the two-sector models of Charlot and Decreuse (2005) and Uren (2006), the participation decision thus generates a composition externality. 4 A key aspect of this article is to show that the composition externality survives when we consider horizontal heterogeneity-workers have similar levels of skills, but in different fields-rather than vertical heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

Choosy Search and the Mismatch of Talents*

Decreuse

2008

Int Economic Review

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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.

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“…The planner takes the joint distribution of schooling cost and ability as given 8 and maximizes the discounted path of aggregate consumption. When the rate of time preference ρ tends to 0, we have:…”

Section: Centralized Economymentioning

confidence: 99%

Over-education for the rich, under-education for the poor: A search-theoretic microfoundation

Charlot

Decreuse

2010

Labour Economics

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This paper studies the efficiency of educational choices in a two sector/two schooling level matching model of the labour market where a continuum of heterogenous workers allocates itself between sectors depending on their decision to invest in education. Individuals differ in ability and schooling cost, the search market is segmented by education, and there is free entry of new firms in each sector. Self-selection in education originates composition effects in the distribution of skills across sectors. This in turn modifies the intensity of job creation, implying the private and social returns to schooling always differ. Provided that ability and schooling cost are not too positively correlated, agents with large schooling coststhe 'poor' -select themselves too much, while there is too little self-selection among the low schooling cost individuals -the 'rich'. We also show that education should be more taxed than subsidized when the Hosios condition holds.

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Adaptability, productivity, and educational incentives in a matching model

Cited by 37 publications

References 22 publications

Job Mobility and Sorting: Theory and Evidence

Job Mobility and Sorting: Theory and Evidence

Choosy Search and the Mismatch of Talents*

Over-education for the rich, under-education for the poor: A search-theoretic microfoundation

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