College graduates tend to marry each other. We use detailed Norwegian data to show that strong assortativity further arises by institution and field of study, especially among high earners from elite programs. Admission discontinuities reveal that enrollment itself, rather than selection,...

One of the main goals of two-sided matching mechanisms is to pair two groups of agents in a stable manner. Stability means that no pair of agents has an incentive to deviate from their assigned match. The outcome of such a match can have significant consequences for the participants involved....

The received characterizations of feasible interim allocations are mostly in the spirit of Border (1991): Fix a family of sets, each containing some player-types, and test the interim allocation under consideration against all these sets. In the published literature, such Border-like...

Are labor markets in higher-income countries more meritocratic, in the sense that worker-job matching is based on skills rather than idiosyncratic attributes unrelated to productivity? If so, why? And what are the aggregate consequences? Using internationally comparable data on worker skills and...

We study the mating patterns of non-heterosexual individuals, who represent a significant and increasing portion of the population, particularly among the youth. We estimate a multidimensional matching model of the marriage market where partner's gender is endogenously chosen conditional on the...

Social scientists have long been interested in marital homogamy and its relationship with inequality. However, measuring homogamy is not straightforward, particularly when one is interested in assessing marital sorting based on multiple traits. In this paper, we argue that Separate Extreme Value...

We set up a simple theoretical model in which banks with varying degrees of government support are matched with CEOs that have different degrees of overconfidence. The channel through which the matching occurs is the share of bonus payments offered by banks in their profit-maximizing contracts....

A principal often needs to match agents to perform coordinated tasks, but agents can quit or slack off if they dislike their match. We study two prevalent approaches for matching within organizations: Centralized assignment by firm leaders and self-organization through market-like mechanisms. We...

A principal often needs to match agents to perform coordinated tasks, but agents can quit or slack off if they dislike their match. We study two prevalent approaches for matching within organizations: Centralized assignment by firm leaders and self-organization through market-like mechanisms. We...

High-skilled workers and high-productivity firms co-locate in large cities. In this paper, I study how the two-sided sorting of workers and firms affects spatial earnings inequality, efficiency of the allocation of workers and firms across cities, and the welfare consequences of place-based...

We analyze the employment effects of directing job seekers' applications toward establishments likely to recruit. We run a two-sided randomization design involving about 800,000 job seekers and 40,000 establishments, based on an empirical model that recommends each job seeker to firms so as to...

Efficiency Adjusted Deferred Acceptance Rule (EDA) is a promising candidate mechanism for a public school assignment. A potential drawback of EDA is that it could encourage students to game the system since it is not strategy-proof. However, to successfully strategize, students typically need...

We study the mating patterns of non-heterosexual individuals, who represent a significant and increasing portion of the population, particularly among the youth. We estimate a multidimensional matching model of the marriage market where partner's gender is endogenously chosen conditional on the...

We evaluate the impacts of a randomized job-fair intervention in which jobseekers and employers can meet at low cost. The intervention generates few hires, but it lowers participants' expectations and causes both firms and workers to invest more in search as predicted by a theoretical model;...

Matching markets can be unstable when individuals prefer to be matched to a partner who also wants to be matched with them. Through a pre-registered and theory-guided laboratory experiment, we provide evidence that such reciprocal preferences exist, significantly decrease stability in matching...

Students participating in centralized admissions procedures do not typically have access to the information used to determine their matched school, such as other students' preferences or school priorities. This can lead to doubts about whether their matched schools were computed correctly (the...

Agents with reciprocal preferences prefer to be matched to a partner who also likes to collaborate with them. In this paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for mechanism design. Formally, the preferences of an agent...

Labour shortages have become prevalent across advanced economies. Yet, little is known about which firms are more likely to face them and the impact they have on the labour market. We create a firm-level data set spanning 28 EU countries, 283 regions and 18 sectors, contributing to close this...

I study a dynamic search-matching model with two-sided heterogeneity, a production complementarity that induces labor market sorting, and aggregate shocks. In response to a positive productivity shock, incentives to sort increase disproportionately. Firms respond by posting additional vacancies,...

This paper develops a framework for studying repeated matching markets. The model departs from the Gale–Shapley matching model by having a fixed set of long-lived players (firms) match with a new generation of short-lived players (workers) in every period. I define history-dependent and...

This study examines the economic effects of research and development (R&D) supports in the context of a program implemented in Türkiye between 2006-2019. Firms receiving the support differ positively from other firms in key economic indicators. Results indicate a 6% rise in patent...

Objects of different quality are to be allocated to agents. Agents can receive at most one object, and there are not enough high-quality objects for every agent. The value to the social planner from allocating objects to any given agent depends on that agent's private information. The social...

Past studies have successfully shown that the level of anonymisation of scientific use files (SUF) is sufficiently high to protect against disclosure attacks that use data from traditional firm databases. However, with the increasing availability of online data about firms, new challenges for...

The Levy Institute Microsimulation Model (LIMM) is a tool used for policy simulations to estimate ex-ante the employment and income effects of sectoral investments. In Istenes (2023), a simple implementation of the LIMM for New York State initially had difficulty producing realistic conditional...

This paper examines how gender-specific application behaviour, firms' hiring practices, and flexibility demands relate to the gender earnings gap, using linked data from the German Job Vacancy Survey and administrative records. Women are less likely than men to apply to high-wage firms with high...

While artificial intelligence (AI) adoption holds the potential to enhance business operations through improved forecasting and automation, its relation with average productivity growth remain highly heterogeneous across firms. This paper shifts the focus and investigates the impact of...

While artificial intelligence (AI) adoption holds the potential to enhance business operations through improved forecasting and automation, its relation with average productivity growth remain highly heterogeneous across firms. This paper shifts the focus and investigates the impact of...

We present an experimental study of decentralized two‐sided matching markets with no transfers. Experimental participants are informed of everyone's preferences and can make arbitrary nonbinding match offers that get finalized when a period of market inactivity has elapsed. Several insights...

We study two first‐order economic consequences of vertical mismatch, using a simple (neoclassical) model of under and overemployment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low‐type workers can perform skilled jobs. People have different...

This paper examines labour market matching in Austria from 2008 to 2024, focusing on the regional impact of the COVID-19 pandemic. Using monthly administrative data, we estimate Beveridge curves and matching efficiency across federal states. Our results show that while COVID-19 temporarily...

Firms organize their production processes differently, with consequences for various metrics of the economy. A so-far little explored issue is whether and how the deepness of firms, meaning the number of hierarchical levels, affects employment segregation in the labor market. We show how the...