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Sorting on skills and preferences: Tinbergen meets Sattinger

Author

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  • Dupuy, A.

    (Research Centre for Educ and Labour Mark)

Abstract

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dupuy, A., 2011. "Sorting on skills and preferences: Tinbergen meets Sattinger," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2011003
    DOI: 10.26481/umaror.2011003
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    File URL: https://cris.maastrichtuniversity.nl/ws/files/1378107/guid-5b2d8b18-87a9-455b-bfaf-f523dd680a57-ASSET1.0.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Arnaud Dupuy, 2021. "Migration in China: To work or to wed?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(4), pages 393-415, June.
    3. Jan Eeckhout & Philipp Kircher, 2011. "Identifying Sorting--In Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 872-906.

    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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