Matching bias in labor demand estimation
Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand.
References listed on IDEAS
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- Giovanna Aguilar & Sílvio Rendon, 2010.
"Employment And Deadweight Loss Effects Of Observed Nonwage Labor Costs,"
Western Economic Association International, vol. 48(3), pages 793-809, 07.
- Silvio Rendon & Giovanna Aguilar, 2007. "Employment and Deadweight Loss Effects of Observed Non-Wage Labor Costs," Working Papers 0704, Centro de Investigacion Economica, ITAM.
- Giovanna Aguilar & Silvio Rendon, 2007. "Employment and deadweight loss effects of observed non-wage labor costs," Documentos de Trabajo / Working Papers 2007-259, Departamento de Economía - Pontificia Universidad Católica del Perú.
- Aguilar, Giovanna & Rendon, Silvio, 2007. "Employment and Deadweight Loss Effects of Observed Non-Wage Labor Costs," IZA Discussion Papers 2856, Institute for the Study of Labor (IZA).
- Hamermesh, Daniel S., 1987. "The demand for labor in the long run," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 8, pages 429-471 Elsevier.