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

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

No 10130, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We test for sorting of workers between and within industrial sectors in a directed search model with coordination frictions. We fit the model to sector-specific vacancy and output data along with 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 confirms assortative matching can be present even when worker and employer components of wage heterogeneity are weakly correlated.

Keywords: Industries; Sorting (search for similar items in EconPapers)
JEL-codes: J30 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-lab and nep-ure
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2018)
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2017)
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2014)
Working Paper: Sorting Between and Within Industries: A Testable Model of Assortative Matching (2014)
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