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Firm-Worker Matching in Industrial ClustersOctávio FigueiredoUniversidade do Porto - Faculdade de Economia (FEP) Paulo GuimaraesUniversity of South Carolina - Moore School of Business; Institute for the Study of Labor (IZA) Douglas P. WoodwardUniversity of South Carolina IZA Discussion Paper No. 6016 Abstract: In this paper we use a novel approach and a large Portuguese employer-employee panel data set to study the hypothesis that industrial agglomeration improves the quality of the firm-worker matching process. Our method makes use of recent developments in the estimation and analysis of models with high-dimensional fixed effects. Using wage regressions with controls for multiple sources of observed and unobserved heterogeneity we find little evidence that the quality of matching increases with firm’s clustering within the same industry. This result supports Freedman’s (2008) analysis using U.S. data.
Number of Pages in PDF File: 29 Keywords: agglomeration, matching, fixed-effects JEL Classification: R12, R39, J31 working papers seriesDate posted: October 23, 2011Suggested CitationContact Information
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