Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78651
Authors: 
Mendes, Rute
van den Berg, Gerard J.
Lindeboom, Maarten
Year of Publication: 
2007
Series/Report no.: 
Working Paper, IFAU - Institute for Labour Market Policy Evaluation 2007:30
Abstract: 
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-emplyee 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.
Subjects: 
Positive assortative matching
matched employer-employee data
productivity
skill
unobserved heterogeneity
sorting
fixed effects
JEL: 
D24
J21
J24
J63
Document Type: 
Working Paper

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