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The Problem With Interim Employment

Author

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  • Stephen Cunningham
  • Jon Vilasuso

Abstract

This paper examines why unemployed skilled workers are reluctant to accept interim unskilled jobs. We develop a bilateral search model in which workers face a job change cost and firms incur a hiring cost for each vacancy filled. The outcome of the bilateral search displays mismatching where skilled workers are matched with unskilled jobs. The extent of mismatching, however, is limited. We find that there exists a critical skill level where workers who possess skill in excess of this value are over-qualified and are not hired for interim unskilled jobs.

Suggested Citation

  • Stephen Cunningham & Jon Vilasuso, 1999. "The Problem With Interim Employment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(2), pages 321-321, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199906)155:2_321:tpwie_2.0.tx_2-8
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    Cited by:

    1. Mosthaf, Alexander, 2011. "Low-wage jobs - stepping stones or just bad signals?," IAB-Discussion Paper 201111, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Alexander Mosthaf, 2014. "Do Scarring Effects of Low-Wage Employment and Non-Employment Differ BETWEEN Levels of Qualification?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(2), pages 154-177, May.

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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