Sorting Between and Within Industries : A Testable Model of Assortative Matching

John M. Abowd, Francis Kramarz, Sébastien Pérez-Duarte, Ian M. Schmutte

We test for sorting of workers between and within industrial sectors in a directed search model with coordination frictions. We fit the model to sector-specific vacancy and output data along with publicly-available statistics that characterize the distribution of worker and employer wage heterogeneity across sectors. Our empirical method is general and can be applied to a broad class of assignment models. The results indicate that industries are the loci of sorting-more productive workers are employed in more productive industries. The evidence confirms assortative matching can be present even when worker and employer components of wage heterogeneity are weakly correlated

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Year of publication:	September 2014
Authors:	Abowd, John M.
Other Persons:	Kramarz, Francis (contributor) ; Schmutte, Ian M. (contributor) ; Pérez-Duarte, Sébastien (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Matching \| Arbeitsproduktivität \| Labour productivity \| Schätzung \| Estimation \| Arbeitsmarkt \| Labour market \| Arbeitskräfte \| Workforce \| Produktivität \| Productivity \| Allokation \| Allocation \| Theorie \| Theory \| Beschäftigungsstruktur \| Employment distribution \| Branchenentwicklung \| Sector development

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