Working Paper Series, Uppsala Center for Labor Studies, Department of Economics, Uppsala University
Mismatch of Talent Evidence on Match Quality, Entry Wages, and Job Mobility
(), Lena Hensvik
() and Oskar Nordström Skans
Abstract: We examine the direct impact of idiosyncratic match
quality on entry wages and job mobility using unique data on worker talents
matched to job-indicators and individual wages. Tenured workers are
clustered in jobs with high job-speciﬁc returns to their types of
talents. We therefore measure mismatch by how well the types of talents of
recent hires correspond to the talents of tenured workers performing the
same jobs. A stylized model shows that match quality has a smaller impact
on entry wages but a larger impact on separations and future wage growth if
matches are formed under limited information. Empirically, we ﬁnd
such patterns for inexperienced workers and workers who were hired from
non-employment, which are also groups where mismatch is more pronounced on
average. Most learning about job-speciﬁc mismatch happens within a
year. Experienced job-to-job movers appear to match under much less
uncertainty. They are better matched on entry and mismatch have a smaller
eﬀect on their initial separation rates and later wage growth.
Instead, match quality is priced into their starting wages.
Keywords: Matching; Job search; Comparative advantage; Employer learning; (follow links to similar papers)
JEL-Codes: J24; J31; J62; J64; (follow links to similar papers)
52 pages, November 18, 2015
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Katarina Grönvall ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom