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Matching bias in labor demand estimation

Giovanna Aguilar Andía () and Silvio Rendon ()

Economics Letters, 2008, vol. 100, issue 2, 297-299

Abstract: Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand.

Date: 2008
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Working Paper: Matching Bias in Labor Demand Estimation (2007) Downloads
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