Sorting Multidimensional Types: Theory and Application

Lindenlaub, Ilse

doi:10.1093/restud/rdw063

Cited by 58 publications

(75 citation statements)

References 43 publications

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“…This may indicate that workers or firms care about other job attributes (Hwang, Mortensen, and Reed ()), or that workers of a similar type enjoy working together as in the peer effects literature. Workers and firms might also be more complex than assumed in most models of sorting (Lindenlaub (), Lise and Postel‐Vinay ()). More specifically to the Swedish context, as we discuss in Appendix C, institutions such as unions may contribute to explain why different firms do not pay similar workers very differently.…”

Section: Empirical Results I: Static Modelmentioning

confidence: 99%

A Distributional Framework for Matched Employer Employee Data

Lamadon

Manresa

2019

ECTA

203

173

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We propose a framework to identify and estimate earnings distributions and worker composition on matched panel data, allowing for two‐sided worker‐firm unobserved heterogeneity and complementarities in earnings. We introduce two models: a static model that allows for nonlinear interactions between workers and firms, and a dynamic model that allows, in addition, for Markovian earnings dynamics and endogenous mobility. We show that this framework nests a number of structural models of wages and worker mobility. We establish identification in short panels, and develop tractable two‐step estimators where firms are classified in a first step. Applying our method to Swedish administrative data, we find that log‐earnings are approximately additive in worker and firm heterogeneity. Our estimates imply the presence of strong sorting patterns between workers and firms, and a small contribution of firms—net of worker composition—to earnings dispersion. In addition, we document that wages have a direct effect on mobility, and that, beyond their dependence on the current firm, earnings after a job move also depend on the previous employer.

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Section: Empirical Results I: Static Modelmentioning

confidence: 99%

A Distributional Framework for Matched Employer Employee Data

Lamadon

Manresa

2019

ECTA

203

173

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“…Like in our model, the mechanical relation that pins down matching inBecker (1973) no longer holds even in the one-to-one matching model when types are multi-dimensional. SeeLindenlaub (2016) andEeckhout and Jovanovic (2011).…”

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confidence: 99%

Assortative Matching With Large Firms

Eeckhout¹,

Kircher²

2018

Econometrica

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Two cornerstones of empirical and policy analysis of firms, in macro, labor and industrial organization, are the determinants of the firm size distribution and the determinants of sorting between workers and firms. We propose a unifying theory of production where management resolves a tradeoff between hiring more versus better workers. The span of control or size is therefore intimately intertwined with the sorting pattern. We provide a condition for sorting that captures this tradeoff between the quantity and quality of workers and that generalizes Becker's sorting condition. A system of differential equations determines the equilibrium allocation, the firm size, and wages, and allows us to characterize the allocation of the quality and quantity of labor to firms of different productivity. We show that our model nests a large number of widely used existing models. We also augment the model to incorporate labor market frictions in the presence of sorting with large firms.

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“…9 In multivariate settings, the conditions for assortativeness in one characteristic are true as long as all academics, on one side, and all …rms, on the other, are homogeneous with respect to the other characteristic. To our knowledge, Lindenlaub (2014) is the …rst to propose a general de…nition for positive and negative assortative matching that take into account heterogeneity along two characteristics for twice continously di¤erentiable production functions. 1 0 If 1 = 0 then any matching is an equilibrium matching in terms of ability.…”

Section: The Market Equilibrium Matchingmentioning

confidence: 99%

Endogenous Matching in University-Industry Collaboration: Theory and Empirical Evidence from the United Kingdom

2018

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent AbstractWe use a two-sided matching framework to analyze collaboration between heterogeneous academics and …rms. We consider both horizontal and vertical characteristics, i.e., those related to a¢ nity (e.g., preferences for a type of scienti…c research) and those related to ability (e.g., capacity to produce high-quality scienti…c output). We build a unique dataset based on the teams of academics and …rms that proposed research projects to the UK's Engineering and Physical Sciences Research Council. Our results are suggestive of positive assortative matching in terms of ability and type while the matching is negative assortative in terms of their interactions. The most able and the most applied academics are the ones that are more likely to propose collaborative as opposed to non-collaborative projects. JEL Classi…cation numbers: O32, I23

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Sorting Multidimensional Types: Theory and Application

Cited by 58 publications

References 43 publications

A Distributional Framework for Matched Employer Employee Data

A Distributional Framework for Matched Employer Employee Data

Assortative Matching With Large Firms

Endogenous Matching in University-Industry Collaboration: Theory and Empirical Evidence from the United Kingdom

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