International Assortative Matching in the European Labor Market

Jan C. van Ours and Thomas Peeters

No 17630, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We investigate whether national borders within Europe hinder the assortative matching of workers to firms in a high skilled labor market. We characterize worker productivity as the ability to contribute to physical output and define firm productivity as the capacity to transform physical output into revenues. We rank workers and firms according to their individual productivity estimates and study the ensuing rank correlation to gauge the degree of assortative matching within and across countries. We find strong evidence for positive assortative matching at the national level, and even more so at the international level. This suggests national borders do not prevent workers and firm from pursuing profitable complementarities in production.

Keywords: Assortive matching; international worker mobility; Football managers (search for similar items in EconPapers)
JEL-codes: J24 J63 M51 Z22 (search for similar items in EconPapers)
Date: 2022-11
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Working Paper: International Assortative Matching in the European Labor Market (2022)
Working Paper: International Assortative Matching in the European Labor Market (2022)
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