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Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

Economics

Yale University

Series

Inequality

Publication Year

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

The Measuring Of Assortativeness In Marriage, Pierre-André Chiappori, Monica Costa-Dias, Costas Meghir Dec 2021

The Measuring Of Assortativeness In Marriage, Pierre-André Chiappori, Monica Costa-Dias, Costas Meghir

Cowles Foundation Discussion Papers

Measuring the extent to which assortative matching
differs between two economies is challenging when the marginal distributions of the characteristic along which sorting takes place (e.g. education) also changes for either or both sexes. Drawing from the statistics literature we define simple conditions that any index has to satisfy to provide a measure of change in sorting that is not distorted by changes in the marginal distributions of the characteristic. While our characterisation of indices of assortativeness is not complete, and hence cannot exclude the possibility of multiple indices providing contradictory results, in an empirical application to US data we …


Earnings Dynamics And Firm-Level Shocks, Benjamin Friedrich, Lisa Laun, Costas Meghir, Luigi Pistaferri Apr 2019

Earnings Dynamics And Firm-Level Shocks, Benjamin Friedrich, Lisa Laun, Costas Meghir, Luigi Pistaferri

Cowles Foundation Discussion Papers

We use matched employer-employee data from Sweden to study the role of the firm in affecting the stochastic properties of wages. Our model accounts for endogenous participation and mobility decisions. We find that firm-specific permanent productivity shocks transmit to individual wages, but the effect is mostly concentrated among the high-skilled workers; firm-specific temporary shocks mostly affect the low-skilled. The updates to worker-firm specific match effects over the life of a firm-worker relationship are small. Substantial growth in earnings variance over the life cycle for high-skilled workers is driven by firms accounting for 44% of cross-sectional variance by age 55.