Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility
American Economic Review
vol. 108,
no. 11, November 2018
(pp. 3303-38)
Abstract
We examine the impact of mismatch on entry wages, separations, and wage growth using unique data on worker talents. We show that workers are sorted on comparative advantage across jobs within occupations. The starting wages of inexperienced workers are unrelated to mismatch. For experienced workers, on the other hand, mismatch is negatively priced into their starting wages. Separations and wage growth are more strongly related to mismatch among inexperienced workers than among experienced workers. These findings are consistent with models of information updating, where less information is available about the quality of matches involving inexperienced workers.Citation
Fredriksson, Peter, Lena Hensvik, and Oskar Nordström Skans. 2018. "Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility." American Economic Review, 108 (11): 3303-38. DOI: 10.1257/aer.20160848Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- J41 Labor Contracts
- J63 Labor Turnover; Vacancies; Layoffs
- J64 Unemployment: Models, Duration, Incidence, and Job Search