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Distribution of Ability and Earnings in a Hierarchical Job Assignment Model

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  • Robert M. Costrell
  • Glenn C. Loury

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  • Robert M. Costrell & Glenn C. Loury, 2004. "Distribution of Ability and Earnings in a Hierarchical Job Assignment Model," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1322-1363, December.
  • Handle: RePEc:ucp:jpolec:v:112:y:2004:i:6:p:1322-1363
    DOI: 10.1086/424741
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    1. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
    2. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
    3. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, vol. 58(5), pages 1121-1149, September.
    4. Sattinger, Michael, 1979. "Differential Rents and the Distribution of Earnings," Oxford Economic Papers, Oxford University Press, vol. 31(1), pages 60-71, March.
    5. Eric D. Gould, 2002. "Rising Wage Inequality, Comparative Advantage, and the Growing Importance of General Skills in the United States," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 105-147, January.
    6. Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 542-571, June.
    7. Teulings, Coen N, 1995. "The Wage Distribution in a Model of the Assignment of Skills to Jobs," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 280-315, April.
    8. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
    9. MacDonald, Glenn M, 1982. "Information in Production," Econometrica, Econometric Society, vol. 50(5), pages 1143-1162, September.
    10. Rothschild, Michael & Stiglitz, Joseph E., 1982. "A model of employment outcomes illustrating the effect of the structure of information on the level and distribution of income," Economics Letters, Elsevier, vol. 10(3-4), pages 231-236.
    11. Sattinger, Michael, 1975. "Comparative Advantage and the Distributions of Earnings and Abilities," Econometrica, Econometric Society, vol. 43(3), pages 455-468, May.
    12. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    13. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
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    Cited by:

    1. Katsuya Takii, 2007. "The Persistence of Differences in Productivity, Wages, Skill Mixes and Profits Between Firms," Discussion Papers in Economics and Business 07-10, Osaka University, Graduate School of Economics.
    2. Ed Hopkins & Tatiana Kornienko, 2010. "Which Inequality? The Inequality of Endowments versus the Inequality of Rewards," American Economic Journal: Microeconomics, American Economic Association, vol. 2(3), pages 106-137, August.
    3. Bas Straathof, 2005. "Schooling inequality and the rise of research," DEGIT Conference Papers c010_012, DEGIT, Dynamics, Economic Growth, and International Trade.
    4. Bidner, Chris, 2010. "Pre-match investment with frictions," Games and Economic Behavior, Elsevier, vol. 68(1), pages 23-34, January.
    5. Heidrun C. Hoppe & Benny Moldovanu & Aner Sela, 2009. "The Theory of Assortative Matching Based on Costly Signals," Review of Economic Studies, Oxford University Press, vol. 76(1), pages 253-281.
    6. Danková, Katarína & Morita, Hodaka & Servátka, Maroš & Zhang, Le, 2019. "Job assignment and fairness concerns," MPRA Paper 95918, University Library of Munich, Germany.
    7. Schwager, Robert, 2008. "Grade Inflation, Social Background, and Labour Market Matching," ZEW Discussion Papers 08-070, ZEW - Leibniz Centre for European Economic Research.
    8. Laurent Gobillon & Dominique Meurs & Sébastien Roux, 2015. "Estimating Gender Differences in Access to Jobs," Journal of Labor Economics, University of Chicago Press, vol. 33(2), pages 317-363.
    9. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the unemployed: does it lower unemployment duration and recurrence?," Working Papers halshs-00590769, HAL.
    10. Schwager, Robert, 2012. "Grade inflation, social background, and labour market matching," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 56-66.
    11. Bas Klaauw & António Dias da Silva, 2011. "Wage dynamics and promotions inside and between firms," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1513-1548, October.
    12. Wing Suen, 2007. "The comparative statics of differential rents in two-sided matching markets," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 149-158, August.
    13. Delfgaauw, Josse & Dur, Robert, 2010. "Managerial talent, motivation, and self-selection into public management," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 654-660, October.
    14. Grant, Darren, 2007. "Grades as information," Economics of Education Review, Elsevier, vol. 26(2), pages 201-214, April.
    15. Arnaud Dupuy, 2008. "The Assignment of Workers to Tasks, Wage Distribution, and Technical Change: A Critical Review," Journal of Income Distribution, Ad libros publications inc., vol. 17(3-4), pages 12-36, September.
    16. Anderson, Ronald C. & Reeb, David M. & Zhang, Yuzhao & Zhao, Wanli, 2013. "The efficacy of regulatory intervention: Evidence from the distribution of informed option trading," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4337-4352.
    17. Bilancini, Ennio & Boncinelli, Leonardo, 2014. "Instrumental cardinal concerns for social status in two-sided matching with non-transferable utility," European Economic Review, Elsevier, vol. 67(C), pages 174-189.
    18. Alexander Ugarov, 2019. "Talent Misallocation across Countries: Evidence from Educational Achievement Tests," 2019 Meeting Papers 1466, Society for Economic Dynamics.
    19. Ed Hopkins, 2012. "Job Market Signaling Of Relative Position, Or Becker Married To Spence," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 290-322, April.
    20. Jan Eeckhout & Roberto Pinheiro, 2014. "Diverse Organizations And The Competition For Talent," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(3), pages 625-664, August.
    21. BURZYNSKI Michal & GOLA Pawel, 2019. "Mexican Migration to the United States: Selection, Assignment, and Welfare," LISER Working Paper Series 2019-10, LISER.
    22. Fabienne Llense, 2010. "French CEOs' Compensations: What is the Cost of a Mandatory Upper Limit?," CESifo Economic Studies, CESifo, vol. 56(2), pages 165-191, June.
    23. Christopher Ferrall & Kjell G. Salvanes & Erik S, 2009. "Wages And Seniority When Coworkers Matter: Estimating A Joint Production Economy Using Norwegian Administrative Data," Working Paper 1200, Economics Department, Queen's University.
    24. Bas Straathof, 2006. "Schooling inequality and the rise of research," CPB Discussion Paper 74.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    25. Gregory Kurtzon, 2013. "Occupational Choice and the E¤ects of Skill Supply on Relative Wages," Working Papers 460, U.S. Bureau of Labor Statistics.

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