Assortative labor matching, city size, and the education level of workers
研究了不同教育水平和职业任务下劳动匹配的同质性如何随城市规模变化,发现大学学历者的匹配有显著城市效应,城市规模翻倍使工人与工厂质量相关性提高9个百分点,匹配解释了22%的城市工资溢价。
We investigate the heterogeneity of assortative labor matching with respect to geography, skills, and tasks. Our contribution is to separate plant quality by education level and occupation tasks using the AKM-model. We introduce a geology-related instrument to analyze the city effect and address limited mobility bias. Using rich administrative worker-plant dataset for Norway, we show that matching of the college educated have a strong city effect. The IV estimates indicate that a doubling of city size increases the correlation between worker and plant quality by 9 percentage points. A wage decomposition shows that matching accounts for 22% of the urban wage premium adjusted for sorting. In terms of occupations, better matching in cities is observed only for non-routine abstract tasks.