Worker heterogeneity, the job-finding rate, and technical change

Basov, Suren, King, Ian and Uren, Lawrence (2014) Worker heterogeneity, the job-finding rate, and technical change. European Economic Review, 70 159-177. doi:10.1016/j.euroecorev.2014.04.008

Author Basov, Suren
King, Ian
Uren, Lawrence
Title Worker heterogeneity, the job-finding rate, and technical change
Journal name European Economic Review   Check publisher's open access policy
ISSN 0014-2921
Publication date 2014-08
Sub-type Article (original research)
DOI 10.1016/j.euroecorev.2014.04.008
Open Access Status Not Open Access
Volume 70
Start page 159
End page 177
Total pages 19
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Formatted abstract
We examine the implications of changes in the skill distribution on the equilibrium matching process and the job finding rate, using a directed search approach. Worker abilities are selected from a distribution while firms face heterogeneous entry costs and direct their job offers to workers. We identify conditions under which technical progress increases or decreases the job finding rate, allowing for entry and the effects of technical changes on heterogeneity. We find that the effects of skill-neutral technical progress on job finding rates are unambiguously non-negative, but the effects of skill-biased changes depend on the elasticity of vacancy costs. However, both skill-neutral and skill-biased technical changes are Pareto improving, ex ante, if all agents are risk neutral.
Keyword Directed search
Worker heterogeneity
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 1 times in Thomson Reuters Web of Science Article | Citations
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Created: Fri, 11 Mar 2016, 16:18:11 EST by Karen Warren on behalf of School of Economics