Baley, IsaacFigueiredo, AnaUlbricht, RobertUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142020-01-31Journal of Political Economy, forthcominghttp://hdl.handle.net/10230/44786This paper studies the cyclical dynamics of skill mismatch and quantifies its impact on labor productivity. We build a tractable directed search model, in which workers differ in skills along multiple dimensions and sort into jobs with heterogeneous skill requirements. Skill mismatch arises due to information frictions and is prolonged by search frictions. Estimated to the U.S., the model replicates salient business cycle properties of mismatch. Job transitions in and out of bottom job rungs, combined with career mobility, are key to account for the empirical fit. The model provides a novel narrative for the scarring effect of unemployment.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsMismatch cycles<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">business cycles</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">cleansing</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">learning about skills</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">multidimensional sorting</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">scarring effect of unemployment</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">search-and-matching</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">skill mismatch</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">sullying.</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Macroeconomics and International Economics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>