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Positive Skill Clustering in Role Assignment Matching Models

Axel Anderson

Working Papers from Georgetown University, Department of Economics

Abstract: Kremer and Maskin (1996) explore optimal pairwise matching when production has defined roles. Despite underlying Cobb-Douglas production functions, the induced maximum production function is no longer supermodular, and positive sorting does not arise. This paper introduces and solves a general class of role assignment matching models with a continuum of types and general underlying supermodular production functions. Under robust conditions on skill distributions, the unique equilibrium entails a novel blend of positive sorting in the large, and locally negative sorting that I call positive clustering. I show how the equilibrium matching changes as the skill distribution or the production function changes. In a salient illustrative example with a geometric distribution over types, I show how sorting and wage inequality respond to changes in production and the skill distribution. Classification- J21,C78,D33

Keywords: matching; task assignment; role assignment; positive clustering; median matching; sorting; inequality (search for similar items in EconPapers)
Pages: 37
Date: 2021-03-16
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Related works:
Journal Article: POSITIVE SKILL CLUSTERING IN ROLE‐ASSIGNMENT MATCHING MODELS (2022) Downloads
Working Paper: Positive Skill Clustering in Role-Assignment Matching Models (2021) Downloads
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Roger Lagunoff Professor of Economics Georgetown University Department of Economics Washington, DC 20057-1036
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