On-the-Job Search, Mismatch and Worker Heterogeneity

Abstract

This paper empirically examines the search behavior of currently employed workers to understand changes in on-the-job search across different types of employed individuals and varying labor market conditions. Using data from the American Time Use Survey, we estimate the responsiveness of workers with varying levels of productivity and job-match quality to regional labor market conditions. We find that those workers who are less-productive, mismatched in their current position, and high-productivity, mismatched workers are more likely to engage in search than other workers. These results have implications for models built on job mismatch, as well as for models seeking to explain increasing inequality and wage dispersion.