Sorting on Skills and Preferences: Tinbergen Meets Sattinger
This paper proposes an assignment model where sorting occurs on attributes including both skills (Sattinger, 1979) and preferences (Tinbergen, 1956). The key feature of this model is that the wage function admits both jobs' and workers' attributes as arguments. Since this function is generically nonlinear (Ekeland et al., 2004), even under positive assortative matching, the correlation between the contribution of workers' attributes to wages and that of jobs' attributes can vary from -1 to 1 depending on the parameters of the model, i.e. preference, technology and the distribution of both sets of attributes. The paper discusses a closed form solution of the model, presents conditions under which nonadditive marginal utility and production function are nonparametrically identified using observations from a single hedonic market and proposes a nonparametric estimator.
|Date of creation:||Aug 2010|
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- Ivar Ekeland & James J. Heckman & Lars Nesheim, 2002.
"Identifying Hedonic Models,"
American Economic Review,
American Economic Association, vol. 92(2), pages 304-309, May.
- Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013.
"Matching, Sorting and Wages,"
Sciences Po publications
11, Sciences Po.
- Jean-Marc Robin & Costas Meghir & Jeremy Lise, 2008. "Matching, Sorting and Wages," 2008 Meeting Papers 273, Society for Economic Dynamics.
- Jean-Marc Robin & Costas Meghir & Jeremy Lise, 2009. "Matching, Sorting and Wages," 2009 Meeting Papers 180, Society for Economic Dynamics.
- Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013. "Matching, Sorting and Wages," Working Papers hal-01070442, HAL.
- Amine Ouazad, 2008. "A2REG: Stata module to estimate models with two fixed effects," Statistical Software Components S456942, Boston College Department of Economics.
- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2010.
"Nonparametric Identification and Estimation of Nonadditive Hedonic Models,"
Econometric Society, vol. 78(5), pages 1569-1591, 09.
- Heckman, James J. & Matzkin, Rosa & Nesheim, Lars, 2009. "Nonparametric Identification and Estimation of Nonadditive Hedonic Models," IZA Discussion Papers 4329, Institute for the Study of Labor (IZA).
- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2009. "Nonparametric Identification and Estimation of Nonadditive Hedonic Models," NBER Working Papers 15226, National Bureau of Economic Research, Inc.
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