Labor mobility under asymmetric information with moving and signalling costs

Information about the true skill level of individual workers may not flow freely across labor markets or between firms, and though available to the workers themselves may not be equally available to some employers. Consequently, the level and composition of labor mobility is affected. In this paper we derive some results concerning the impact of moving costs in conjunction with informational asymmetry upon the level of labor mobility, the skill level of those who move and the effect upon both these variables of costly signalling.