This paper examines a problem of worker misallocation into jobs. A theoretical model, allowing for heterogeneous workers and firms, shows that job search frictions generate mismatch between employees and employers. In the empirical analysis, the …
This paper examines the intersection of unobserved productivity and mismatch in the British labour market. Using the British Cohort Study 1970 (BCS70) data, individual unobserved heterogeneity is measured by the cognitive and non-cognitive skill test …