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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- 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
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