Sorting On-line and On-time

Banfi, Stefano and Choi, Sekyu and Villena-Roldán, Benjamin (2019): Sorting On-line and On-time.

Abstract

Using proprietary data from a Chilean online job board, we find strong, positive assortative matching at the worker-position level, both along observed dimensions and on unobserved characteristics (OLS Mincer residual wages). We also find that this positive assortative matching is robustly procyclical. Since we use information on job applications instead of final matches, we use the generalized deferred-acceptance algorithm to simulate tentative final allocations. Under all considered scenarios for the algorithm, positive assortative matching is preserved from the application stage to the realized matches.

• Item Type: MPRA Paper
• Language: English
• Keywords: Online search, assortative matching, labor markets, business cycle
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J60 - General

References

Abowd, J. M., F. Kramarz, and D. N. Margolis (1999): High Wage Workers and High Wage Firms, Econometrica, 2(67), 251-333.

Adachi, H. (2003): A search model of two-sided matching under nontransferable utility, Journal of Economic Theory, 113(2), 182-198.

Andrews, M. J., L. Gill, T. Schank, and R. Upward (2008): High Wage Workers and Low Wage Firms: Negative Assortative Matching or Limited Mobility Bias?, Journal of the Royal Statistical Society. Series A (Statistics in Society), 171(3), 673-697.

Bagger, J., and R. Lentz (2014): An Empirical Model of Wage Dispersion with Sorting, Working Paper 20031, National Bureau of Economic Research.

Banfi, S., and B. Villena-Roldan (forthcoming): Do High-Wage Jobs Attract more Applicants? Directed Search Evidence from the Online Labor Market, Journal of Labor Economics.

Bartolucci, C., F. Devicienti, and I. Monzon (forthcoming): Identifying sorting in practice, American Economic Journal: Applied Economics.

Becker, G. S. (1973): A Theory of Marriage: Part I, Journal of Political Economy, 81(4), 813-846.

Card, D., A. R. Cardoso, J. Heining, and P. Kline (2018): Firms and Labor Market Inequality: Evidence and Some Theory, Journal of Labor Economics, 36(S1), S13-S70.

Card, D., J. Heining, and P. Kline (2013): Workplace heterogeneity and the rise of West German wage inequality, The Quarterly Journal of Economics, 128(3), 967-1015.

Sahin, A., J. Song, G. Topa, and G. L. Violante (2014): Mismatch Unemployment, American Economic Review, 104(11), 3529-64.

DiNardo, J., N. M. Fortin, and T. Lemieux (1996): Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach, Econometrica, 64(5), 1001- 1044.

Eeckhout, J., and P. Kircher (2011): Identifying Sorting{In Theory, The Review of Economic Studies, 78(3), 872-906.

Eeckhout, J., and P. Kircher (2018): Assortative Matching With Large Firms, Econometrica, 86(1), 85-132.

Gale, D., and L. S. Shapley (1962): College Admissions and the Stability of Marriage, The American Mathematical Monthly, 69(1), 9-15.

Gee, L. K. (2015): Information Effects on Job Application Rates by Gender in a Large Field Experiment, Mimeo, Tufts University.

Hagedorn, M., T. H. Law, and I. Manovskii (2017): Identifying Equilibrium Models of Labor Market Sorting, Econometrica, 85(1), 29-65.

Hitsch, G. J., A. Hortacsu, and D. Ariely (2010): Matching and Sorting in Online Dating, American Economic Review, 100(1), 130-63.

Jolivet, G., B. Jullien, and F. Postel-Vinay (2016): Reputation and Prices on the e-Market: Evidence from a Major French Platform," International Journal of Industrial Organization, forthcoming.

Jolivet, G., and H. Turon (2014): Consumer Search Costs and Preferences on the Internet, Mimeo, University of Bristol.

Kudlyak, M., D. Lkhagvasuren, and R. Sysuyev (2013): Systematic Job Search: New Evidence from Individual Job Application Data, mimeo, Federal Reserve Bank of Richmond.

Lewis, G. (2011): Asymmetric Information, Adverse Selection and Online Disclosure: The Case of eBay Motors, The American Economic Review, 101(4), 1535-1546.

Lise, J., C. Meghir, and J.-M. Robin (2016): Matching, sorting and wages, Review of Economic Dynamics, 19, 63-87, Special Issue in Honor of Dale Mortensen.

Lise, J., and J.-M. Robin (2017): The macrodynamics of sorting between workers and fi�rms, American Economic Review, 107(4), 1104-35.

Lopes de Melo, R. (2018): Firm Wage Differentials and Labor Market Sorting: Reconciling Theory and Evidence, Journal of Political Economy, 126(1), 313-346.

Marinescu, I. E., and R. Rathelot (forthcoming): Mismatch Unemployment and the Geography of Job Search, American Economic Journal: Macroeconomics.

Marinescu, I. E., and R. P. Wolthoff (2015): Opening the Black Box of the Matching Function: The Power of Words, Discussion Paper 9071, IZA.

Postel-Vinay, F., and J.-M. Robin (2002): The Distribution of Earnings in an Equilibrium Search Model with State-Dependent Offers and Counteroffers," International Economic Review, 43(4), 989-1016.

Restuccia, D., and R. Rogerson (2017): The causes and costs of misallocation, Journal of Economic Perspectives, 31(3), 151-74.

Roth, A. E., and M. A. O. Sotomayor (1990): Two-sided matching, vol. 18 of Econometric Society Monographs. Cambridge University Press.

Shimer, R., and L. Smith (2000): Assortative Matching and Search, Econometrica, 68(2), 343-369.