This article examines the effects of transitory skill mismatch in a matching model with heterogeneous jobs and workers. In our model, some highly-educated workers may temporarily accept jobs for which they are over-qualified because they can engage in on-the-job search in pursuit of a better job. We show that this feature has relevant implications for the set of equilibria, the unemployment rates of the various groups of workers, the degree of wage inequality and the response of the labor market to shifts in the demand and supply of skills.
- on-the-job search,
- wage inequality
Available at: http://works.bepress.com/marceljansen/2/