Author & Abstract
Pieter Gautier is a Professor of Economics at VU University Amsterdam. His research interests are in macroeconomics, microeconomics, labour, and housing. He is associate editor of the Journal of the European Economic Association. He is also the co-founder of SAM (Search and Matching research group). He has published in top journals such as RES, AER, JEEA and many more.
Search, Sorting and Screening
Joint work with Xiaoming Cai and Ronald Wolthoff
We investigate the effect of search frictions on labor market sorting by constructing a model which is in line with recent evidence that employers collect a pool of applicants before interviewing a subset of them. In this environment, we derive the necessary and sufficient conditions for sorting in applications as well as matches. We show that positive sorting is obtained when production complementarities outweigh a force against sorting measured by a quality-quantity elasticity. Interestingly, we find that the required degree of production complementarity for positive sorting is increasing in the number of interviews: it ranges from square-root-supermodularity if each firm can interview a single applicant to log-supermodularity if each firm can interview all its applicants