Mismatch of talent: Evidence on match quality, entry wages and job mobility

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,...

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Bibliographic Details
Published in:The American economic review 2018-11, Vol.108 (11), p.3303-3338
Main Authors: Fredriksson, Peter, Hensvik, Lena, Nordström Skans, Oskar
Format: Article
Language:English
Subjects:
Ability
Arbeitsmobilität
Belegschaft
Berufsanfänger
Comparative advantage
Lohnhöhe
Mismatch
Occupational mobility
Occupations
Personalbestand
Qualifikation
Qualifikationsmerkmal
Schweden
Wages & salaries
Workers
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Summary: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.
ISSN:0002-8282
1944-7981
1944-7981
DOI:10.1257/aer.20160848