How to Improve Worker-Firm Matching: Evidence from a Temporary Foreign Worker Market

59 Pages Posted: 18 May 2021

Abstract

This paper investigates the role of worker-firm matching algorithms in accounting for early job separation rates. For this purpose, we examine Korea’s temporary foreign worker program in which the government classifies firms by priority levels and matches them with foreign workers based on their stated preferences. Using administrative data, we examine predictors for the job separation rates and propose alternative matching methods using the serial dictatorship. Our simulation results show that alternative matching methods can substantially reduce job separation rates, suggesting a possible improvement of the Korean program.

JEL Classification: J4, J6, O15

Suggested Citation

Cho, Yoonyoung and Lee, Soohyung, How to Improve Worker-Firm Matching: Evidence from a Temporary Foreign Worker Market. Available at SSRN: https://ssrn.com/abstract=3846673 or http://dx.doi.org/10.2139/ssrn.3846673

Yoonyoung Cho (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Soohyung Lee

Seoul National University ( email )

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