The present paper contributes to the theoretical analysis of the human capital investment and participation decision of heterogeneous workers in the search and matching framework‎. ‎Its aim is to characterize the equilibrium and to identify the efficiency‎. ‎Here‎, the paper studies search equilibrium and matching to consider the participation decision of heterogeneous workers who have different inherent ability levels‎. ‎The productivity investment decision is endogenous and wages are determined by the Nash bargain among participants.

JEL Classifications: J23, J24