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Title: Studies of Sequential Choice in Labor Market
Resulting in 1 citation.
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McCall, Brian P. |
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Studies of Sequential Choice in Labor Market Ph.D. Dissertation, Princeton University, 1988 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Heterogeneity; Job Search; Job Turnover; Mobility, Occupational; Occupational Choice This dissertation investigates problems of sequential job choice when jobs are characterized by significant uncertainty, the importance of which may differ from job to job, and where information revealed at one job may be useful for predicting the outcomes at other jobs. Recent results in the statistical theory of multi-armed bandits are used to determine the optimal sampling strategies for workers in this environment. Chapter 1 develops a model of job search where jobs are not identical and where not all information of value is revealed before a job is accepted. In this case, the optimal sampling strategy implies that jobs with more residual uncertainty are, ceteris paribus, ranked higher and associated with a lower reservation wage, which governs job acceptance. This gives a very simple explanation of why reservation wages might increase over an unemployment spell. Chapter 2 of this dissertation tries to determine whether matching occurs at an occupational level. A dynamic model of job choice is developed where matching information is comprised of job-specific and occupation-specific components. One empirical prediction derived from the theory is that, if occupation matching is significant, those working their second job in an occupation would be less likely to quit than those working their first job. This prediction is tested using weekly employment data from the NLSY and semi-parametric hazard estimation techniques which control for unobserved heterogeneity. The predictions of the model are confirmed but only for those working their second job in a occupation who, in addition, had tenure in their first job exceeding one year. Finally, Chapter 3 develops a model of occupational choice where matching information is partly occupation-specific, workers risk being fired, and interoccupational job switches may be significantly more costly, due to training, thenintraoccupational job switches. It is shown that, when job switching costs are low and training costs negligible, workers find occupations with larger match uncertainty and where information tends to be occupation-specific more attractive. If it is more costly to move between occupations than within an occupation, then a worker likes occupations where information is relatively job-specific. [UMI ADG89-04319] |
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Bibliography Citation
McCall, Brian P. Studies of Sequential Choice in Labor Market. Ph.D. Dissertation, Princeton University, 1988. |