Sorting Between and Within Industries: A Testable Model of Assortative Matching
We test for sorting of workers between and within industrial sectors in a directed search model with coordination frictions. We fit the model to sector-specific vacancy and output data along with publicly-available statistics that characterize the distribution of worker and employer wage heterogeneity across sectors. Our empirical method is general and can be applied to a broad class of assignment models. The results indicate that industries are the loci of sorting-more productive workers are employed in more productive industries. The evidence confirms assortative matching can be present even when worker and employer components of wage heterogeneity are weakly correlated.
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Copy CitationJohn M. Abowd, Francis Kramarz, Sébastien Pérez-Duarte, and Ian M. Schmutte, "Sorting Between and Within Industries: A Testable Model of Assortative Matching," NBER Working Paper 20472 (2014), https://doi.org/10.3386/w20472.
Published Versions
John M. Abowd & Francis Kramarz & Sébastien Pérez-Duarte & Ian M. Schmutte, 2018. "Sorting Between and Within Industries: A Testable Model of Assortative Matching," Annals of Economics and Statistics, GENES, issue 129, pages 1-32. citation courtesy of