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Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility

Peter Fredriksson, Lena Hensvik and Oskar Skans

American Economic Review, 2018, vol. 108, issue 11, 3303-38

Abstract: We examine the impact of mismatch on entry wages, separations, and wage growth using unique data on worker talents. We show that workers are sorted on comparative advantage across jobs within occupations. The starting wages of inexperienced workers are unrelated to mismatch. For experienced workers, on the other hand, mismatch is negatively priced into their starting wages. Separations and wage growth are more strongly related to mismatch among inexperienced workers than among experienced workers. These findings are consistent with models of information updating, where less information is available about the quality of matches involving inexperienced workers.

JEL-codes: D83 J24 J31 J41 J63 J64 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/aer.20160848
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Related works:
Working Paper: Mismatch of talent: evidence on match quality, entry wages, and job mobility (2015) Downloads
Working Paper: Mismatch of Talent Evidence on Match Quality, Entry Wages, and Job Mobility (2015) Downloads
Working Paper: Mismatch of Talent Evidence on Match Quality, Entry Wages, and Job Mobility (2015) Downloads
Working Paper: Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility (2015) Downloads
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