Sorting on Skills and Preferences: Tinbergen Meets Sattinger
This paper proposes an assignment model where sorting occurs on at- tributes that are simultaneously a skill (Sattinger, 1979) and a preference (Tinbergen, 1956). The key feature of this model is that the wage func- tion 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 de- pending 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 for the nonparametric identi cation of compensating wage di¤erentials and nonadditive marginal utility functions using observations from a single hedonic market and proposes a nonparametric estimator.
|Date of creation:||May 2012|
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- Ivar Ekeland & James Heckman & Lars Nesheim, 2002.
"Identifying hedonic models,"
CeMMAP working papers
CWP06/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- 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.
- James J. Heckman & Rosa L. Matzkin & Lars Nesheim, 2010. "Nonparametric Identification and Estimation of Nonadditive Hedonic Models," Econometrica, 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).
- Amine Ouazad, 2008. "A2REG: Stata module to estimate models with two fixed effects," Statistical Software Components S456942, Boston College Department of Economics.
- Jean-Marc Robin & Costas Meghir & Jeremy Lise, 2009.
"Matching, Sorting and Wages,"
2009 Meeting Papers
180, Society for Economic Dynamics.
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