The Happiness Gains From Sorting and Matching in the Labor Market
نویسندگان
چکیده
The Happiness Gains from Sorting and Matching in the Labor Market Sorting of people on the labor market not only assures the most productive use of valuable skills but also generates individual utility gains if people experience an optimal match between job characteristics and their preferences. Based on individual data on reported satisfaction with life it is possible to assess these latter gains from matching. We introduce a two-equation ordered probit model with endogenous switching and study self-selection into government and private sector jobs. We find considerable gains from matching amounting to an increase in the fraction of very satisfied workers from 53.8 to 58.8 percent relative to a hypothetical random allocation of workers to the two sectors. JEL Classification: D60, I31, J24, J45
منابع مشابه
تحلیل نقش مراکز کاریابی در بازار کار با نگاهی به تجربه ایران
Job centers have an outstanding role in the process of labor force employment through cutting the costs of labor force adjustment. This paper studies the dynamic models of the labor force demand with the aim of pinpointing job centers role in labor market. According to the results, "job search and matching" approach better and more thoroughly considers the role of job centers in the labor marke...
متن کاملRationality of Post Accession Migration
After EU enlargement in 2004, thousands of Polish workers moved to the UK. This study evaluates market efficiency in sorting Polish-born workers to locations where they enjoyed the highest returns to their individual skills, exploring Polish and UK labour force survey data to establish whether the Poles that emigrated to the UK did so on rational premises. The expected gains from migration refl...
متن کاملTransition to Entrepreneurship from the Public Sector: Predispositional and Contextual Effects
S of career dynamics implicitly claim that government employees are not entrepreneurial. Utilizing longitudinal data from the U.S. Panel Study for Income Dynamics, we investigate the reasons for the low rate of entrepreneurship from the public sector. We conjecture that it is due to labor market matching processes and the bureaucratic nature of public organizations and bureaucratization of indi...
متن کاملA Labor Capital Asset Pricing Model
We show that labor search frictions are an important determinant of the cross-section of equity returns. In the data, sorting firms by loadings on labor market tightness, the key statistic of search models, generates a spread in future returns of 6% annually. We propose a partial equilibrium labor market model in which heterogeneous firms make optimal employment decisions under labor search fri...
متن کاملJob Finding and Inflow to Unemployment : The Case of Iran
In order to analyze the labor market through search and matching theory, we need deep parameters namely, rate of inflow to the unemployment pool and job-finding rate. In other words, these rates are primary parameters of matching function; hence, estimating these parameters is an essential step for the use of search and matching theory in every economy. In this paper, we estimate these rates of...
متن کامل