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Multidimensional Sorting under Random Search
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DOI：10.1086/725362.png)
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Abstract
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We analyze sorting in a frictional labor market when workers and jobs have multidimensional characteristics. We say that matching is positive assortative in dimension (j, k) if workers with higher endowment in skill k are matched to a job distribution with higher values of attribute j in the first-order stochastic dominance sense. Crucial for sorting is a single-crossing property of technology. Sorting is positive between worker-job attributes with strong complementarities but negative in other dimensions. Finally, sorting is based on comparative advantage: workers sort into jobs that suit their skill mix rather than their overall skill level.
Keywords:
WAGE DISPERSION
EMPIRICAL-MODEL
WORKER
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