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• W638492004 abstract "The incidence of unemployment and its consequences both at the aggregate and the individual level has received considerable attention. However, little has been done in explaining why typically joblessness, and the burden of recessions falls more heavily on the lower end of the skill distribution. This paper examines the consequences of a vertical type of skill-mismatch, that takes the form of workers accepting transitorily jobs they are over-qualified for, and continue searching while employed for more suitable jobs, thereby influencing the labor market prospects of lower skill groups. I develop a matching model with endogenous skill requirements of jobs, and heterogeneous workers, which allows for job finding rates to vary across skill and over the business cycle. The model explains why the burden of unemployment falls disproportionably at the lower segment of the labor market, and is consistent with the well established evidence that match quality and job-to-job transitions are procyclical. ∗Department of Economics, Central European University and National Bank of Hungary (e-mail: chassamboulli@ceu.hu). I am greatly indebted to John Haltiwanger, Jeff Smith, John Shea, and Michael Pries for their suggestions and advice." @default.
• W638492004 created "2016-06-24" @default.
• W638492004 creator A5084811522 @default.
• W638492004 date "2005-12-04" @default.
• W638492004 modified "2023-09-27" @default.
• W638492004 title "Job Competition over the Business Cycle" @default.
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