Becker Meets Ricardo: Multisector Matching with Social and Cognitive Skills

McCann, Robert J.; Shi, Xianwen; Siow, Aloysius; Wolthoff, Ronald P.

doi:10.2139/ssrn.2048554

Cited by 3 publications

(2 citation statements)

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“…The developed notion of PAM also helps to shed light on several results in the literature where matching occurs based on multiple variables, suggesting that this framework is useful for deriving closed forms beyond the quadratic-Gaussian case. McCann et al [2012] analyze, amongst other things, a marriage market where agents match based on cognitive and social skills. Under the assumption of identical distributions (i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

Sorting Multidimensional Types: Theory and Application

Lindenlaub

2017

Review of Economic Studies

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This paper studies multidimensional matching between workers and jobs. Workers differ in manual and cognitive skills and sort into jobs that demand different combinations of these two skills. To study this multidimensional sorting, I develop a theoretical framework that generalizes the unidimensional notion of assortative matching. I derive the equilibrium in closed form and use this explicit solution to study biased technological change. The key finding is that an increase in worker-job complementarities in cognitive relative to manual inputs leads to more pronounced sorting and wage inequality across cognitive relative to manual skills. This can trigger wage polarization and boost aggregate wage dispersion. I then estimate the model for the US and identify sizeable technology shifts: during the last two decades, worker-job complementarities in cognitive inputs strongly increased whereas complementarities in manual inputs decreased. In addition to this bias in complementarities, there has also been a cognitive skill-bias in production. Counterfactual exercises suggest that these technology shifts can account for observed changes in worker-job sorting, wage polarization and a significant part of the increase in US wage dispersion.

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Section: Literature Reviewmentioning

confidence: 99%

Sorting Multidimensional Types: Theory and Application

Lindenlaub

2017

Review of Economic Studies

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“…This is consistent with Bagues and Perez-Villadoniga (2012), who showed that in a natural experiment, recruiters favor candidates who are equivalent to their own assortment of skills to work together as a team. Since the assortative matching occurs only through cognitive ability, in the labor market, a worker lacking social skills but possessing excellent cognitive ability may nonetheless have a high wage (McCann, Shi, Siow, & Wolthoff, 2012).…”

Section: Introductionmentioning

confidence: 99%

Has globalization triggered collective impact of national intelligence on economic growth?

et al. 2015

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Previous studies found that the impact of intelligence (IQ) on productivity is larger at country level than at individual level. Labor works in clusters at the country level, and therefore, the effect of individual skill complementarities collectively magnifies per capita income at the national level, which is consistent with the O-ring theory of economic development. The main feature of the O-ring theory is positive assortative matching, in which individuals can augment productivity per capita when they team up with other individuals with equivalent levels of skills. We investigated whether global integration would intensify this impact owing to global interconnectivity of skills and intellectual ideas. By extending the O-ring theory, we examined the role of economic globalization (i.e., actual flows and restrictions), social globalization (i.e., personal contact, information flows, and cultural proximity), and political globalization in moderating the impact of national IQ on the economic growth of more than 110 countries during 1970-2010. The results of our hierarchical multiple regressions suggest that IQ rather than economic, political, or social globalization has the strongest impact on economic growth. Moreover, moderation analysis 2 revealed that globalization has reduced the impact of national IQ on economic growth at the cross-country level. We suggest that within the context of globalization, friction was present in the matching market and cognitive skill-sorting inefficiencies, which reduced the collective impact of IQ on economic growth.

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Migration in China: To Work or to Wed?

Dupuy¹

2018

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Terms of use: Documents inSchaumburg-Lippe-Straße 5-9 53113 Bonn, Germany Rosen's hedonic model. We study its properties and provide identification and estimation strategies. Using data on internal migration in China, we estimate the model and compute equilibrium under counter-factual alternatives to decompose the migration surplus. Our findings reveal that about 1/5 of the migration surplus of migrant women is generated in the marriage market and 3/5 in the labor market. We also find that the welfare of urban men married with a migrant wife would have been 10% lower had their migrant wives not entered the urban marriage market. JEL Classification:D3, J21, J23, J31

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Becker Meets Ricardo: Multisector Matching with Social and Cognitive Skills

Cited by 3 publications

References 65 publications

Sorting Multidimensional Types: Theory and Application

Sorting Multidimensional Types: Theory and Application

Has globalization triggered collective impact of national intelligence on economic growth?

Migration in China: To Work or to Wed?

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