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Unraveling Reduces the Scope of an Entry Level Labor Market: Gastroenterology with and without a Centralized Match

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  • Roth, Alvin
  • Niederle, Muriel

Abstract

The entry-level market for American gastroenterologists was organized by a centralized clearinghouse from 1986 to 1996. Before, and since, it has been conducted via a decentralized market in which appointment dates have unraveled to well over a year before the start of employment. We find that, both before and after the years in which the centralized clearinghouse was used, gastroenterologists are less mobile and more likely to be employed at the same hospital in which they were internal medicine residents than when the clearinghouse was in use. This suggests that the clearinghouse not only coordinates the timing of appointments but also increases the scope of the market, compared to a decentralized market with early appointments.

Suggested Citation

  • Roth, Alvin & Niederle, Muriel, 2003. "Unraveling Reduces the Scope of an Entry Level Labor Market: Gastroenterology with and without a Centralized Match," Scholarly Articles 2623686, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:2623686
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    References listed on IDEAS

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    1. Haruvy, Ernan & Roth, Alvin E. & Unver, M. Utku, 2006. "The dynamics of law clerk matching: An experimental and computational investigation of proposals for reform of the market," Journal of Economic Dynamics and Control, Elsevier, vol. 30(3), pages 457-486, March.
    2. Roth, Alvin E, 1991. "A Natural Experiment in the Organization of Entry-Level Labor Markets: Regional Markets for New Physicians and Surgeons in the United Kingdom," American Economic Review, American Economic Association, vol. 81(3), pages 415-440, June.
    3. Posner, Richard A. & Avery, Christopher & Jolls, Christine & Roth, Alvin, 2001. "The Market for Federal Judicial Law Clerks," Scholarly Articles 2623748, Harvard University Department of Economics.
    4. Alvin E Roth & Richard A Posner & Christine Jolls & Christopher Avery, 2007. "The New Market for Federal Judicial Law Clerks," Levine's Bibliography 843644000000000288, UCLA Department of Economics.
    5. Hao Li & Wing Suen, 2000. "Risk Sharing, Sorting, and Early Contracting," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1058-1087, October.
    6. Elliott Peranson & Alvin E. Roth, 1999. "The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design," American Economic Review, American Economic Association, vol. 89(4), pages 748-780, September.
    7. Roth, Alvin E & Xing, Xiaolin, 1997. "Turnaround Time and Bottlenecks in Market Clearing: Decentralized Matching in the Market for Clinical Psychologists," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 284-329, April.
    8. Muriel Niederle & Alvin E. Roth, 2001. "Unraveling Reduces the Scope of an Entry Level Labor Market: Gastroenterology With and Without a Centralized Match," NBER Working Papers 8616, National Bureau of Economic Research, Inc.
    9. Kamecke, Ulrich, 1998. "Wage Formation in a Centralized Matching Market," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 33-53, February.
    10. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
    11. Li, Hao & Rosen, Sherwin, 1998. "Unraveling in Matching Markets," American Economic Review, American Economic Association, vol. 88(3), pages 371-387, June.
    12. John H. Kagel & Alvin E. Roth, 2000. "The Dynamics of Reorganization in Matching Markets: A Laboratory Experiment Motivated by a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(1), pages 201-235.
    13. Roth, Alvin E. & Niederle, Muriel, 2003. "Relationship Between Wages and Presence of a Match in Medical Fellowships," Scholarly Articles 35059714, Harvard University Department of Economics.
    14. Roth, Alvin E & Xing, Xiaolin, 1994. "Jumping the Gun: Imperfections and Institutions Related to the Timing of Market Transactions," American Economic Review, American Economic Association, vol. 84(4), pages 992-1044, September.
    15. Wing Suen, 2000. "A Competitive Theory of Equilibrium and Disequilibrium Unravelling in Two-Sided Matching," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 101-120, Spring.
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    Cited by:

    1. Chen, Yan & Jiang, Ming & Kesten, Onur & Robin, Stéphane & Zhu, Min, 2018. "Matching in the large: An experimental study," Games and Economic Behavior, Elsevier, vol. 110(C), pages 295-317.
    2. Haruvy, Ernan & Roth, Alvin E. & Unver, M. Utku, 2006. "The dynamics of law clerk matching: An experimental and computational investigation of proposals for reform of the market," Journal of Economic Dynamics and Control, Elsevier, vol. 30(3), pages 457-486, March.
    3. Machado, Cecilia & Szerman, Christiane, 2021. "Centralized college admissions and student composition," Economics of Education Review, Elsevier, vol. 85(C).
    4. Gonczarowski, Yannai A. & Nisan, Noam & Ostrovsky, Rafail & Rosenbaum, Will, 2019. "A stable marriage requires communication," Games and Economic Behavior, Elsevier, vol. 118(C), pages 626-647.
    5. Yoonyoung Cho & Soohyung Lee, 2021. "How to Improve Worker–Firm Matching: Evidence from a Temporary Foreign Worker Market," Korean Economic Review, Korean Economic Association, vol. 37, pages 419-454.
    6. Marie-Pierre Dargnies & Rustamdjan Hakimov & Dorothea Kübler, 2019. "Self-Confidence and Unraveling in Matching Markets," Management Science, INFORMS, vol. 65(12), pages 5603-5618, December.
    7. Soohyung Lee & Muriel Niederle, 2015. "Propose with a rose? Signaling in internet dating markets," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 731-755, December.
    8. Ehlers, Lars & Massó, Jordi, 2015. "Matching markets under (in)complete information," Journal of Economic Theory, Elsevier, vol. 157(C), pages 295-314.
    9. Jonathan M.V. Davis, 2017. "The Short and Long Run Impacts of Centralized Clearinghouses: Evidence from Matching Teach For America Teachers to Schools," 2017 Papers pda791, Job Market Papers.
    10. Kim Nguyen & Michael Peters & Michel Poitevin, 2017. "Can EconJobMarket help Canadian universities?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1573-1594, December.
    11. , & , E., 2014. "Free riding and participation in large scale, multi-hospital kidney exchange," Theoretical Economics, Econometric Society, vol. 9(3), September.
    12. Muriel Niederle & Alvin E. Roth, 2001. "Unraveling Reduces the Scope of an Entry Level Labor Market: Gastroenterology With and Without a Centralized Match," NBER Working Papers 8616, National Bureau of Economic Research, Inc.
    13. Alison Watts, 2016. "Auctions Versus Private Negotiations in Buyer-Seller Networks," Games, MDPI, vol. 7(3), pages 1-14, August.
    14. Muriel Niederle & Alvin E. Roth & M. Utku Ünver, 2013. "Unraveling Results from Comparable Demand and Supply: An Experimental Investigation," Games, MDPI, vol. 4(2), pages 1-40, June.
    15. Muriel Niederle & Alvin E. Roth, 2003. "Unraveling Reduces Mobility in a Labor Market: Gastroenterology with and without a Centralized Match," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1342-1352, December.
    16. Muriel Niederle & Leeat Yariv, 2009. "Decentralized Matching with Aligned Preferences," Working Papers 2009-3, Princeton University. Economics Department..
    17. Ettore Damiano & Hao Li & Wing Suen, 2005. "Unravelling of Dynamic Sorting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1057-1076.
    18. Gunter J. Hitsch & Ali Hortaçsu & Dan Ariely, 2010. "Matching and Sorting in Online Dating," American Economic Review, American Economic Association, vol. 100(1), pages 130-163, March.
    19. Atila Abdulkadiroğlu & Nikhil Agarwal & Parag A. Pathak, 2015. "The Welfare Effects of Coordinated Assignment: Evidence from the NYC HS Match," NBER Working Papers 21046, National Bureau of Economic Research, Inc.
    20. Machado, Cecilia & Szerman, Christiane, 2016. "Centralized Admission and the Student-College Match," IZA Discussion Papers 10251, Institute of Labor Economics (IZA).
    21. Yann Bramoullé & Brian W. Rogers & Erdem Yenerdag, 2022. "Matching with Recall," AMSE Working Papers 2203, Aix-Marseille School of Economics, France.
    22. Gallemore, Caleb & Jespersen, Kristjan, 2016. "Transnational Markets for Sustainable Development Governance: The Case of REDD+," World Development, Elsevier, vol. 86(C), pages 79-94.

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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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