Returns to education and experience on the labor market: a matching perspective

Les rendements de l'éducation et de l'expérience sur le marché du travail: offre, demande et appariement

Pauline Corblet
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Pauline Corblet: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

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Abstract: This thesis' main objects of interest are the wage returns to education and experience on labor markets, and the earning inequalitiesthese returns generate. It seeks to understand these returns from a matching perspective, by investigating determinants of relationshipformation between workers and firms. The first chapter documents flattening wage returns to experience between higher educationgraduates entering the French labor market in 1998 and 2010. Differences in average wage growth are decomposed by occupation intoan extensive and intensive margin. Two potential mechanisms behind the wage growth slow down are explored: access to managerialpositions and impact of initial match quality. I find access to managerial positions is more infrequent for recent cohorts. I also find thatinitial match quality has not worsened between the 1998 and 2010 cohorts, but its impact on future wages has become more enduring.The second chapter studies the decrease in the education wage premium on the Portuguese labor market between 1987 and 2017.I build a model of one-to-many matching with multidimensional types in which several workers are employed by a single firm. I structurallyestimate the model on matched employer-employee data. Counterfactual exercises suggest that both changes in worker preferences andthe increasing relative productivity of high school graduates over non-graduates act as a mitigating force on the decreasing high schoolwage premium, but do not fully compensate for high school graduates' rise in relative supply. In the third chapter, co-authored with JeremyFox and Alfred Galichon, we explore how expectations on future returns influence matching decisions. We introduce a model of dynamicmatching with transferable utility. We explore aggregate dynamics and show that a stationary equilibrium exists. We propose twoalgorithms to compute a stationary equilibrium and adapt both methods for estimation.

Keywords: Returns to education; Returns to experience; Matching models; Structural econometrics; Rendements de l'éducation; Rendements de l'expérience; Modèles d'appariement; Econométrie structurelle (search for similar items in EconPapers)
Date: 2022-05-18
New Economics Papers: this item is included in nep-edu and nep-upt
Note: View the original document on HAL open archive server: https://theses.hal.science/tel-03852824
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Published in Economics and Finance. Institut d'études politiques de paris - Sciences Po, 2022. English. ⟨NNT : 2022IEPP0008⟩

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