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Assortative labor matching, city size, and the education level of workers

Author

Listed:
  • Stefan Leknes

    (Statistics Norway)

  • Jørn Rattsø

    (Department of Economics, Norwegian University of Science and Technology, Norway)

  • Hildegunn E. Stokke

    (Department of Economics, Norwegian University of Science and Technology, Norway)

Abstract

Recent research shows that thicker labor markets display better assortative matching. Our contribution addresses identification challenges and heterogeneity of effects, in particular with respect to education. Using a rich administrative worker-firm dataset for Norway, labor market size is shown to be of relevance for assortative matching mainly for the college educated. Among these, the pattern is most pronounced for workers of intermediate ages, with education related to business and administration, men, and service sector workers. Results are robust to instrumentation of population size using historical mines and sample adjustment to mitigate limited mobility bias.

Suggested Citation

  • Stefan Leknes & Jørn Rattsø & Hildegunn E. Stokke, 2020. "Assortative labor matching, city size, and the education level of workers," Working Paper Series 18320, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:18320
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    Cited by:

    1. Jørn Rattsø & Hildegunn E Stokke, 2022. "Public sector wage compression and wage inequality: Gender and geographic heterogeneity," Working Paper Series 19522, Department of Economics, Norwegian University of Science and Technology.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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