Matching bias in labor demand estimation |
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| Authors: | Giovanna Aguilar,Sí lvio Rendon, |
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| Affiliation: | aDepartmento de Economía, Universidad Católica del Perú, Lima 32, Perú;bEconomics Department, Stony Brook University, NY 11794, USA |
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| Abstract: | Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand. |
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| Keywords: | Matching Employment Labor demand estimation |
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