Assortative Matching and Search

Shimer, Robert; Smith, Lones

doi:10.1111/1468-0262.00112

Cited by 589 publications

(708 citation statements)

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“…This has spurned the development of models that allow for search frictions and that consider wages and productivity as involving worker-specific, firm-specific, and match-specific components. Burdett and Coles (1999), Shimer and Smith (2000), and Shi (2001) are some examples in the theoretical literature. They present search models with two-sided heterogeneity and search frictions.…”

Section: Introductionmentioning

confidence: 99%

An empirical assessment of assortative matching in the labor market

2010

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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. Terms of use: Documents in An Empirical Assessment of Assortative Matching in the Labor MarketRute Mendes Gerard J. van den Berg Maarten Lindeboom The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA 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. In labor markets with worker and firm heterogeneity, the matching between firms and workers may be assortative, meaning that the most productive workers and firms team up. We investigate this with longitudinal population-wide matched employer-employee data from Portugal. Using dynamic panel data methods, we quantify a firm-specific productivity term for each firm, and we relate this to the skill distribution of workers in the firm. We find that there is positive assortative matching, in particular among long-lived firms. Using skill-specific estimates of an index of search frictions, we find that the results can only to a small extent be explained by heterogeneity of search frictions across worker skill groups. JEL Classification:J21, J24, D24, J63

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Section: Introductionmentioning

confidence: 99%

An empirical assessment of assortative matching in the labor market

2010

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“…It is aimed to capture the main forces of search models with on-the-job search and sorting (à la Shimer and Smith (2000)): a worker who already has a job will only move to a new job if the new job is more productive. Therefore, the types of jobs out of unemployment are on average less productive than those that are accepted when moving from an existing job.…”

Section: Environmentmentioning

confidence: 99%

Unemployment cycles

Lindenlaub¹,

Eeckhout²

2015

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The labor market by itself can create cyclical outcomes, even in the absence of exogenous shocks.We propose a theory that shows that the search behavior of the employed has profound aggregate implications for the unemployed. There is a strategic complementarity between active on-the-job search and vacancy posting by firms: active search changes the number of searchers and the duration of a job, and in the presence of sorting, it improves the quality of the pool of searchers. More vacancy posting in turn makes costly on-the-job search more attractive, a self-fulfilling belief. The absence of on-the-job search discourages vacancy posting, rendering costly on-the-job search unattractive.This model of multiple equilibria can account for large fluctuations in vacancies, unemployment, and job-to-job transitions; it provides a rationale for the Jobless Recovery through a novel channel of the employed searchers crowding out the unemployed; and it gives rise to a shift in the Beveridge Curve (the unemployment-vacancy locus). Each of these phenomena is matched in the data.

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“…Also we assume that Y (x) is twice differentiable and strictly quasi concave. Since we treat the circular mismatch model as a simplified version of a more general matching model, for example Shimer and Smith (2000), the derivative of Y (x) at 0 should be 0. A simple example of the more general matching model would…”

Section: The Model 21 Assumptionsmentioning

confidence: 99%