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Mismatch of Talent: Evidence on Match Quality, Entry Wages, and Job Mobility
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics. UCLS, Uppsala, Sweden;IZA, Bonn, Germany.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. UCLS, Uppsala, Sweden; CESifo, Uppsala, Sweden.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics. Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. UCLS, Uppsala, Sweden;IZA, Bonn, Germany.
2018 (English)In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 108, no 11, p. 3303-3338Article in journal (Refereed) Published
Abstract [en]

We examine the impact of mismatch on entry wages, separations, and wage growth using unique data on worker talents. We show that workers are sorted on comparative advantage across jobs within occupations. The starting wages of inexperienced workers are unrelated to mismatch. For experienced workers, on the other hand, mismatch is negatively priced into their starting wages. Separations and wage growth are more strongly related to mismatch among inexperienced workers than among experienced workers. These findings are consistent with models of information updating, where less information is available about the quality of matches involving inexperienced workers.

Place, publisher, year, edition, pages
2018. Vol. 108, no 11, p. 3303-3338
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-369599DOI: 10.1257/aer.20160848ISI: 000448528900007OAI: oai:DiVA.org:uu-369599DiVA, id: diva2:1272171
Funder
Marcus and Amalia Wallenberg FoundationRagnar Söderbergs stiftelseAvailable from: 2018-12-18 Created: 2018-12-18 Last updated: 2018-12-18Bibliographically approved

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Fredriksson, PeterHensvik, LenaNordström Skans, Oskar

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