Sorting on Skills and Preferences: Tinbergen Meets Sattinger
Abstract
This paper proposes an assignment model where sorting occurs on attributes that are simultaneously a skill (Sattinger, 1979) and a preference (Tinbergen, 1956). The key feature of this model is that the wage function admits both jobs'' and workers'' attributes as arguments. Since this function is generically nonlinear (Ekeland et al., 2004), even under positive assortative matching, the correlation between the contribution of workers'' attributes to wages and that of jobs'' attributes can vary from -1 to 1 depending on the parameters of the model, i.e. preference, technology and the distribution of both sets of attributes. The paper discusses a closed form solution of the model, presents conditions for the nonparametric identification of compensating wage differentials and nonadditive marginal utility functions using observations from a single hedonic market and proposes anonparametric estimator.Download Info
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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 017.Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:dgr:umamet:2011017
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Related research
Keywords: microeconomics ;Other versions of this item:
- Dupuy, Arnaud, 2010. "Sorting on Skills and Preferences: Tinbergen Meets Sattinger," IZA Discussion Papers 5143, Institute for the Study of Labor (IZA).
- Dupuy Arnaud, 2011. "Sorting on Skills and Preferences: Tinbergen Meets Sattinger," Research Memoranda 003, Maastricht : ROA, Research Centre for Education and the Labour Market.
- Arnaud Dupuy, 2012. "Sorting on Skills and Preferences: Tinbergen Meets Sattinger," Working Papers 2012/13, Maastricht School of Management.
- D3 - Microeconomics - - Distribution
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-16 (All new papers)
- NEP-HRM-2011-04-16 (Human Capital & Human Resource Management)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J. & Matzkin, Rosa & Nesheim, Lars, 2009.
"Nonparametric Identification and Estimation of Nonadditive Hedonic Models,"
IZA Discussion Papers
4329, Institute for the Study of Labor (IZA).
- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2010. "Nonparametric Identification and Estimation of Nonadditive Hedonic Models," Econometrica, Econometric Society, vol. 78(5), pages 1569-1591, 09.
- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2009. "Nonparametric Identification and Estimation of Nonadditive Hedonic Models," NBER Working Papers 15226, National Bureau of Economic Research, Inc.
- Pierre-Andre Chiappori & Robert McCann & Lars Nesheim, 2007.
"Hedonic price equilibria, stable matching, and optimal transport: equivalence, topology, and uniqueness,"
CeMMAP working papers
CWP23/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Pierre-André Chiappori & Robert McCann & Lars Nesheim, 2010. "Hedonic price equilibria, stable matching, and optimal transport: equivalence, topology, and uniqueness," Economic Theory, Springer, vol. 42(2), pages 317-354, February.
- Chiappori, PA & McCann, RJ & Nesheim, LP, 2010. "Hedonic price equilibria, stable matching, and optimal transport: equivalence, topology, and uniqueness," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Ivar Ekeland & James J. Heckman & Lars Nesheim, 2002.
"Identifying Hedonic Models,"
American Economic Review,
American Economic Association, vol. 92(2), pages 304-309, May.
- Ivar Ekeland & James Heckman & Lars Nesheim, 2002. "Identifying hedonic models," CeMMAP working papers CWP06/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Amine Ouazad, 2008. "A2REG: Stata module to estimate models with two fixed effects," Statistical Software Components S456942, Boston College Department of Economics.
- Jean-Marc Robin & Costas Meghir & Jeremy Lise, 2008.
"Matching, Sorting and Wages,"
2008 Meeting Papers
273, Society for Economic Dynamics.
- Jean-Marc Robin & Costas Meghir & Jeremy Lise, 2009. "Matching, Sorting and Wages," 2009 Meeting Papers 180, Society for Economic Dynamics.
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