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Sorting Between and Within Industries: A Testable Model of Assortative Matching

John Abowd (), Francis Kramarz (), Sebastien Perez-Duarte and Ian Schmutte ()

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: We test Shimer's (2005) theory of the sorting of workers between and within industrial sectors based on directed search with coordination frictions, deliberately maintaining its static general equilibrium framework. We fit the model to sector-specific wage, vacancy and output data, including publicly-available statistics that characterize the distribution of worker and employer wage heterogeneity across sectors. Our empirical method is general and can be applied to a broad class of assignment models. The results indicate that industries are the loci of sorting-more productive workers are employed in more productive industries. The evidence confirm that strong assortative matching can be present even when worker and employer components of wage heterogeneity are weakly correlated.

Keywords: Wage Differentials; Human Capital; Skills; Job Matching; Simulation Methods (search for similar items in EconPapers)
JEL-codes: J31 J24 E24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-ure
Date: 2017-01
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https://www2.census.gov/ces/wp/2017/CES-WP-17-43.pdf First version, 2017 (application/pdf)

Related works:
Journal Article: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2018) Downloads
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2014) Downloads
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2014) Downloads
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:17-43

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