EconPapers    
Economics at your fingertips  
 

Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility

Peter Fredriksson, Lena Hensvik () and Oskar Skans
Additional contact information
Lena Hensvik: IFAU

No 9585, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the direct impact of idiosyncratic match quality on entry wages and job mobility using unique data on worker talents matched to job-indicators and individual wages. Tenured workers are clustered in jobs with high job-specific returns to their types of talents. We therefore measure mismatch by how well the types of talents of recent hires correspond to the talents of tenured workers performing the same jobs. A stylized model shows that match quality has a smaller impact on entry wages but a larger impact on separations and future wage growth if matches are formed under limited information. Empirically, we find such patterns for inexperienced workers and workers who were hired from non-employment, which are also groups where mismatch is more pronounced on average. Most learning about job-specific mismatch happens within a year. Experienced job-to-job movers appear to match under much less uncertainty. They are better matched on entry and mismatch have a smaller effect on their initial separation rates and later wage growth. Instead, match quality is priced into their starting wages.

Keywords: matching; job search; comparative advantage; employer learning (search for similar items in EconPapers)
JEL-codes: J64 J24 J31 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma
Date: 2015-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published in American Economic Review Vol. 108, No. 11 (Nov), pp. 3303-38.

Downloads: (external link)
http://ftp.iza.org/dp9585.pdf (application/pdf)

Related works:
Journal Article: Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility (2018) Downloads
Working Paper: Mismatch of talent: evidence on match quality, entry wages, and job mobility (2015) Downloads
Working Paper: Mismatch of Talent Evidence on Match Quality, Entry Wages, and Job Mobility (2015) Downloads
Working Paper: Mismatch of Talent Evidence on Match Quality, Entry Wages, and Job Mobility (2015) Downloads
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:iza:izadps:dp9585

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-11-12
Handle: RePEc:iza:izadps:dp9585