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The spatial sorting and matching of skills and firms

Mion, Giordano and Naticchioni, Paolo (2009) The spatial sorting and matching of skills and firms. Canadian Journal of Economics, 42 (1). pp. 28-55. ISSN 0008-4085

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Identification Number: 10.1111/j.1540-5982.2008.01498.x

Abstract

In this paper we make use of a matched employer-employee database for Italy to look at the spatial distribution of wages. Using this rich database we aim to open up the black box of agglomeration economies exploiting the micro dimension of interaction among economic agents, both individuals and firms. We provide evidence that firm size and, especially, skills are sorted across space and account for a large portion of the spatial wage variation. Our data also support the assortative matching hypothesis, which we show not to be driven by co-location of good workers and firms. Finally, we point out that assortative matching is negatively related to local market size.

Item Type: Article
Official URL: http://economics.ca/cje/en/index.php
Additional Information: © 2012 Canadian Economics Association
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R30 - General
Sets: Departments > Geography and Environment
Date Deposited: 19 Mar 2012 16:06
Last Modified: 26 Oct 2017 15:51
URI: http://eprints.lse.ac.uk/id/eprint/42670

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