Young workers' professional experience and access to high-skill jobs: a note

The implications of on-the-job search and learning-by-doing of young workers are studied in a search-matching model. The labor market is segmented in two sub-markets: that of beginners, and that of experienced workers offering higher wages. After a long enough employment spell, beginners can search for a better-paying job in the experienced sub-market. Employment instability reduces upgrading opportunities for young workers, penalizing the overall economy. Under specific conditions this phenomenon is reinforced when firms are more fussy about workers' professional experience.