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How to Improve Worker–Firm Matching: Evidence from a Temporary Foreign Worker Market

Author

Listed:
  • Yoonyoung Cho

    (World Bank)

  • Soohyung Lee

    (Seoul National University)

Abstract

This research investigates the role of worker–firm matching algorithms in accounting for early job separation rates. For this purpose, we examine Korea’s temporary foreign worker program in which the government classifies firms by priority level and matches them with foreign workers on the basis of their stated preferences. Using administrative data, we examine predictors for the job separation rates and propose alternative matching methods using serial dictatorship. Our simulation results show that alternative matching methods can substantially reduce job separation rates, thereby suggesting a possible improvement of the Korean program.

Suggested Citation

  • Yoonyoung Cho & Soohyung Lee, 2021. "How to Improve Worker–Firm Matching: Evidence from a Temporary Foreign Worker Market," Korean Economic Review, Korean Economic Association, vol. 37, pages 419-454.
    • Handle: RePEc:kea:keappr:ker-20210701-37-2-08
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    References listed on IDEAS

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    More about this item

    Keywords

    Job Matching; Temporary Immigrant; Migration; Market Design; Employment Permit System;
    All these keywords.

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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