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Firm-Worker Matching in Industrial Clusters

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Author Info

  • Octávio Figueiredo

    () (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Paulo Guimarães

    () (CEF.UP, Faculdade de Economia, Universidade do Porto and University of South Carolina)

  • Douglas Woodward

    () (University of South Carolina)

Abstract

In this paper we use a novel approach and a large Portuguese employer-employee panel data set to study the hypothesis that industrial agglomeration improves the quality of the firm-worker matching process. Our method makes use of recent developments in the estimation and analysis of models with high-dimensional fixed effects. Using wage regressions with controls for multiple sources of observed and unobserved heterogeneity we find little evidence that the quality of matching increases with firm's clustering within the same industry. This result supports Freedman's (2008) analysis using U.S. data.

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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 434.

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Length: 26 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:por:fepwps:434

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Keywords: Firm-Worker Match; Industrial Clusters;

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  1. Ana Rute Cardoso & Miguel Portela, 2009. "Micro Foundations for Wage Flexibility: Wage Insurance at the Firm Level," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 29-50, 03.
  2. Andersson, Fredrik & Burgess, Simon & Lane, Julia, 2004. "Cities, Matching and the Productivity Gains of Agglomeration," CEPR Discussion Papers 4598, C.E.P.R. Discussion Papers.
  3. John M. Abowd & Paul A. Lengermann & Kevin L. McKinney, 2002. "The Measurement of Human Capital in the U.S. Economy," Longitudinal Employer-Household Dynamics Technical Papers 2002-09, Center for Economic Studies, U.S. Census Bureau, revised Mar 2003.
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