Sorting on Skills and Preferences: Tinbergen Meets Sattinger

Arnaud Dupuy ()

No 2012/13, Working Papers from Maastricht School of Management

Abstract: This paper proposes an assignment model where sorting occurs on at- tributes that are simultaneously a skill (Sattinger, 1979) and a preference (Tinbergen, 1956). The key feature of this model is that the wage func- tion admits both jobs and workers attributes as arguments. Since this function is generically nonlinear (Ekeland et al., 2004), even under positive assortative matching, the correlation between the contribution of workers' attributes to wages and that of jobs attributes can vary from -1 to 1 de- pending on the parameters of the model, i.e. preference, technology and the distribution of both sets of attributes. The paper discusses a closed form solution of the model, presents conditions for the nonparametric identi cation of compensating wage di¤erentials and nonadditive marginal utility functions using observations from a single hedonic market and proposes a nonparametric estimator.

Keywords: Hedonic models; Compensating wage differentials; Personality traits; Firms and workers fi xed effects; Nonparametric Identi cation. (search for similar items in EconPapers)
JEL-codes: D3 J21 J23 J31 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2012-05
New Economics Papers: this item is included in nep-lma
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http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2012-13.pdf First version, 2012 (application/pdf)

Related works:
Working Paper: Sorting on skills and preferences: Tinbergen meets Sattinger (2011)
Working Paper: Sorting on skills and preferences: Tinbergen meets Sattinger (2011)
Working Paper: Sorting on Skills and Preferences: Tinbergen Meets Sattinger (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:msm:wpaper:2012/13

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