Labor Seminars Amsterdam

Oskar Nordström Skans (Uppsala University, Sweden)
Tuesday, 25 April 2017

We examine the impact of match quality on entry wages and turnover using unique data on worker talents, jobs and wages. Match quality should have a small impact on entry wages but a large impact on separations and future wage growth if matches are formed under limited information. We find such patterns for inexperienced workers, who are also exposed to more initial mismatch. Experienced workers match under much less uncertainty. They are better matched on entry and mismatch has a smaller effect on their separation rates and later wage growth. Instead, match quality is priced into their starting wages. Joint with Lena Hensvik and Peter Fredriksson.

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