We propose a simple test that uses information on workers' mobility, wages and firms' profits to identify the sign and … strength of assortative matching. The basic intuition underlying our empirical strategy is that, in the presence of positive … (negative) assortative matching, good workers are more (less) likely to move to better firms than bad workers. Assuming that …

This paper assesses wage setting and wage dynamics in a search and matching framework where (i) workers and firms on … wages and workers cannot commit to not searching on the job. The resulting progression of wages (from firms paying just … growth are negatively correlated with initial wages. …

-displacement occupational matching in explaining the cost of job displacement. We combine German administrative data on the work history of …

provides a valid approximation of observed wages and matching patterns for a large part of the data. For low-type workers …, however, wages are decreasing in the type of the firm a worker is matched with. This prediction of theoretical sorting models …