Sorting on Skills and Preferences: Tinbergen Meets Sattinger
AbstractThis paper proposes an assignment model where sorting occurs on at- tributes that are simultaneously a skill (Sattinger, 1979) and a preference (Tinbergen, 1956). The key feature of this model is that the wage func- tion 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 de- pending 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 identi cation of compensating wage di¤erentials and nonadditive marginal utility functions using observations from a single hedonic market and proposes a nonparametric estimator.
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Bibliographic InfoPaper provided by Maastricht School of Management in its series Working Papers with number 2012/13.
Length: 47 pages
Date of creation: May 2012
Date of revision:
Hedonic models; Compensating wage differentials; Personality traits; Firms and workers fi xed effects; Nonparametric Identi cation.;
Other versions of this item:
- Dupuy Arnaud, 2011. "Sorting on Skills and Preferences: Tinbergen Meets Sattinger," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- 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," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- 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
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- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2010.
"Nonparametric Identification and Estimation of Nonadditive Hedonic Models,"
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.
- 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).
- Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013.
"Matching, Sorting and Wages,"
Sciences Po publications
11, Sciences Po.
- 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.
- Jan Eeckhout & Philipp Kircher, 2009.
"Identifying Sorting - In Theory,"
PIER Working Paper Archive
09-007, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Philipp Kircher & Jan Eeckhout, 2009. "Identifying Sorting, In Theory," 2009 Meeting Papers 581, Society for Economic Dynamics.
- Eeckhout, Jan & Kircher, Philipp, 2009. "Identifying Sorting: In Theory," IZA Discussion Papers 4004, Institute for the Study of Labor (IZA).
- Jan Eeckhout & Philipp Kircher, 2011. "Identifying sorting: in theory," LSE Research Online Documents on Economics 29708, London School of Economics and Political Science, LSE Library.
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