Luca Coraggio (), Marco Pagano (), Annalisa Scognamiglio () and Joacim Tåg ()
Additional contact information
Luca Coraggio: University of Naples Federico II
Marco Pagano: University of Naples Federico II, and, Postal: Research Institute of Industrial Economics, Stockholm, Sweden
Annalisa Scognamiglio: University of Naples Federico II, and, Postal: Research Institute of Industrial Economics, Stockholm, Sweden
Joacim Tåg: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Abstract: We present a novel measure of job-worker allocation quality (JAQ) by exploiting employer-employee data with machine learning techniques and validate it in various ways. Our measure correlates positively with earnings and negatively with separations over individual workers’ careers. At firm level, it increases with competition, non-family firm status, workers’ human capital and has a robust correlation with productivity. The quality of rank-and-file workers’ job matches responds positively to improvements in management quality. JAQ can be constructed for any employer-employee data including workers’ occupations, and used to explore research questions in organization and labor economics, as well as in corporate finance.
Keywords: Jobs; Workers; Matching; Mismatch; Machine Learning; Productivity; Management
JEL-codes: D22; D23; D24; G34; J24; J31; J62; L22; L23; M12; M54
Language: English
53 pages, First version: April 1, 2022. Revised: April 25, 2023. Earlier revisions: October 24, 2022.
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