Excess Worker Reallocation

S-Tier
Journal: Review of Economic Studies
Year: 2001
Volume: 68
Issue: 3
Pages: 593-612

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Workers face a trade-off between macroeconomic and individual incentives to work in different occupations/industries; namely, between search frictions and personal comparative advantages. Workers endowed with heterogeneous multi-dimensional skills search for jobs that require different skill combinations. In equilibrium, specialized individuals contact few, selected types of vacancies, where they are likely to be hired; those with weak comparative advantages are seldom chosen among competing applicants, thus seek any job type. In a tight labour market, comparative advantages dominate waiting costs: offsetting labour mobility across industries/occupations—Excess Worker Reallocation—is lower and matches are more successful, consistently with direct and indirect evidence.

Technical Details

RePEc Handle
repec:oup:restud:v:68:y:2001:i:3:p:593-612.
Journal Field
General
Author Count
1
Added to Database
2026-01-26