Matching Bias in Labor Demand Estimation

Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand.

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Year of publication:	2007-09
Authors:	Aguilar, Giovanna ; Rendon, Sílvio
Institutions:	Institute for the Study of Labor (IZA)
Subject:	matching \| employment \| labor demand estimation

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 3076 10 pages
Classification:	J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; J32 - Nonwage Labor Costs and Benefits; Private Pensions
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005763762