Identifying Sorting in Practice

Cristian Bartolucci, Francesco Devicienti () and Ignacio Monzon

American Economic Journal: Applied Economics, 2018, vol. 10, issue 4, 408-38

Abstract: We propose a novel methodology to uncover the sorting pattern in labor markets. We identify the strength of sorting solely from a ranking of firms by profits. To discern the sign of sorting, we build a noisy ranking of workers from wage data. Our test for the sign of sorting is consistent even with noisy worker rankings. We apply our approach to a panel dataset that combines social security earnings records with detailed financial data for firms in the Veneto region of Italy. We find robust evidence of positive sorting. The correlation between worker and firm types is about 52%.

JEL-codes: J24 J31 J41 J62 L25 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/app.20170068
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Citations: View citations in EconPapers (22)

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Related works:
Working Paper: Identifying Sorting in Practice (2015)
Working Paper: Identifying Sorting in Practice (2015)
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