Identifying Sorting in Practice

Cristian Bartolucci, Francesco Devicienti () and Ignacio Monzon

No 431, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: We propose a novel methodology to uncover the sorting pattern in the labor market. Our methodology exploits the additional information contained in profits, which complements the information from wages and transitions typically used in previous work. 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. We provide a test for the sign of sorting that is consistent even with noise in worker rankings. We apply our approach to a panel data set that combines social security earnings records for workers in the Veneto region of Italy with detailed financial data for firms. We find robust evidence of positive sorting. The correlation between worker and firm types is about 52%.

Keywords: Assortative matching; worker mobility; profits; matched employer-employee data (search for similar items in EconPapers)
JEL-codes: J31 J6 L2 (search for similar items in EconPapers)
Pages: pages 52
Date: 2015
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://www.carloalberto.org/wp-content/uploads/2018/11/no.431.pdf (application/pdf)

Related works:
Journal Article: Identifying Sorting in Practice (2018)
Working Paper: Identifying Sorting in Practice (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cca:wpaper:431

Access Statistics for this paper

More papers in Carlo Alberto Notebooks from Collegio Carlo Alberto Contact information at EDIRC.
Bibliographic data for series maintained by Giovanni Bert ().