Ranking Firms Using Revealed Preference

Isaac Sorkin

No 23938, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper estimates workers' preferences for firms by studying the structure of employer-to-employer transitions in U.S. administrative data. The paper uses a tool from numerical linear algebra to measure the central tendency of worker flows, which is closely related to the ranking of firms revealed by workers' choices. There is evidence for compensating differential when workers systematically move to lower-paying firms in a way that cannot be accounted for by layoffs or differences in recruiting intensity. The estimates suggest that compensating differentials account for over half of the firm component of the variance of earnings.

JEL-codes: E24 J01 J3 J32 J42 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cmp, nep-lma and nep-mac
Note: EFG LS
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Citations: View citations in EconPapers (18)

Published as Isaac Sorkin, 2018. "Ranking Firms Using Revealed Preference*," The Quarterly Journal of Economics, vol 133(3), pages 1331-1393.

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Related works:
Journal Article: Ranking Firms Using Revealed Preference (2018)
Working Paper: Ranking Firms Using Revealed Preference (2017)
Working Paper: Ranking Firms Using Revealed Preference (2016)
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