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The spatial sorting and matching of skills and firms

journal contribution
posted on 2023-06-08, 23:40 authored by Giordano Mion, Paolo Naticchioni
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.

History

Publication status

  • Published

Journal

Canadian Journal of Economics

ISSN

0008-4085

Publisher

Wiley

Issue

1

Volume

42

Page range

28-55

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2015-12-07

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