Identifying Sorting in Practice

Bartolucci, Cristian; Devicienti, Francesco; Monzón, Ignacio

doi:10.1257/app.20170068

Cited by 29 publications

(29 citation statements)

References 57 publications

(69 reference statements)

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“…Since an important concern in our analysis is to tackle the issue of the unobserved heterogeneity that can bias the cross-sectional estimates, we then carry out quantile fixed effects estimates (Canay 2011). In fact, in the literature unobserved worker heterogeneity has been proved to be very important in affecting the relationship between rents and wages since high-skilled workers may sort into highly profitable firms (Arai and Heyman 2001;Bartolucci et al 2015;Margolis and Salvanes 2001;Martins 2009). Furthermore, recent papers have also taken into account firm unobserved heterogeneity that might play a crucial role in affecting firm profitability and rent sharing policies.…”

Section: Econometric Strategymentioning

confidence: 99%

The Extent of Rent Sharing along the Wage Distribution

Matano

Naticchioni²

2017

Brit J Industrial Rel

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The relation between rent sharing and wages has generally been evaluated on average wages. This article uses a unique employer–employee panel database to investigate the extent of rent sharing along the wage distribution in Italy. We apply quantile regression techniques and control for national level bargaining, unobserved worker and firm heterogeneity and endogeneity. Our findings show that the extent of rent sharing decreases along the wage distribution, suggesting that unskilled workers benefit most from firms’ rents. By applying quantile regressions by occupational categories, we show that the decreasing pattern is mainly driven by blue collar workers, while estimates for white collars are higher and basically constant along the wage distribution. We also provide evidence that unions might represent one of the drivers of our findings.

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Section: Econometric Strategymentioning

confidence: 99%

The Extent of Rent Sharing along the Wage Distribution

Matano

Naticchioni²

2017

Brit J Industrial Rel

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“…Also related isBartolucci et al (2015), who rank firms according to their profits, and find evidence of positive sorting using Italian data.7 In other words, k : {1, ..., J} → {1, ..., K} maps firm j to firm class k(j).8 Here we abstract from firm-level observable characteristics. We return to this issue in Section 4.…”

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confidence: 99%

A Distributional Framework for Matched Employer Employee Data

2017

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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. 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 establish identification in short panels, and develop tractable two-step estimators where firms are classified into heterogeneous classes in a first step. Applying our method to Swedish administrative data, we find that log-earnings are approximately additive in worker and firm heterogeneity, with a strong association between workers and firms, and a small relative contribution of firm heterogeneity 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 past firm.

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“…First, we apply the method pioneered by Abowd et al (1999) and perfected by Card et al (2013) to separate in a wage equation the individual and rm components, and we use those as measures of rm's and a worker's quality, respectively. Aware that these measures can be imprecise and, particularly for rms, may not be highly correlated with actual productivity (Eeckhout & Kircher 2011), we also follow Bartolucci et al (2018) in using more direct measures of productivity and protability of rms as measures of the quality of rms. In the second step, we calculate two measures of the strength of positive assortative matching between rms and workers in each of the 101 French Districts, separately, for each year between 1995 and 2005.…”

Section: Data and Measures Of Worker And Rm Qualitymentioning

confidence: 99%

“…ductivity type (de Melo 2018, Eeckhout & Kircher 2011, Gautier & Teulings 2006. Hence, in the same vein as Bartolucci et al (2018), we adopt an alternative measure of rm quality which more closely captures productivity compared to the wage-pay potential: the labor productivity of a rm in a given year measured as Value Added per Worker, VAPW. 23 From our empirical analysis we can also (indirectly) argue whether worker-rm matching increases the total potential payroll paid to workers (as revealed by AKM rm xed eects), or the total value-added generated by them.…”

Section: Quality Of Workers and Quality Of Rmsmentioning

confidence: 99%

Immigration and Worker-Firm Matching

Orefice¹,

Peri²

2020

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HighlightsIn labor markets characterised by large dispersion of workers' productivity and worker-firm complementarity, high quality firms have strong incentives to screen for the quality of workers. This implies positive assortative matching and an increase in the average productivity.Immigration, by increasing the variance of workers abilities, may drive stronger PAM between firms and workers.Using French matched employer-employee (DADS) data over the period 1995-2005 we document that positive supply-driven changes of immigrant workers in a district increased the strength of positive assortative Matching and the average productivity of the district.One percentage point increase in the supply-driven share of immigrants in the district implies an increase in the share of positive assortative matches (net of mismatch) by 3.3 percentage points. This corresponds to a 30% reduction in the PAM gap between a district belonging to the 25 th percentile of the PAM intensity distribution and the Parisian labor market.

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Identifying Sorting in Practice

Cited by 29 publications

References 57 publications

The Extent of Rent Sharing along the Wage Distribution

The Extent of Rent Sharing along the Wage Distribution

A Distributional Framework for Matched Employer Employee Data

Immigration and Worker-Firm Matching

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