JAQ of All Trades: Job Mismatch, Firm Productivity and Managerial Quality

45 Pages Posted: 8 Apr 2022 Last revised: 24 Oct 2022

See all articles by Luca Coraggio

Luca Coraggio

University of Naples Federico II - Department of Economics and Statistics; CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF)

Marco Pagano

Einaudi Institute for Economics and Finance (EIEF); Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF)

Annalisa Scognamiglio

CSEF; Research Institute of Industrial Economics (IFN); CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF)

Joacim Tåg

Research Institute of Industrial Economics (IFN); Hanken School of Economics

Date Written: October 22, 2022

Abstract

Does the matching between workers and jobs help explain productivity differentials across firms? To address this question we develop a job-worker allocation quality measure (JAQ) by combining employer-employee administrative data with machine learning techniques. The proposed measure is positively and significantly associated with labor earnings over workers’ careers. At firm level, it features a robust positive correlation with firm productivity, and with managerial turnover leading to an improvement in the quality and experience of management. JAQ can be constructed for any employer-employee data including workers’ occupations, and used to explore the effect of corporate restructuring on workers’ allocation and careers.

Keywords: jobs, workers, matching, mismatch, machine learning, productivity, management, managerial quality

JEL Classification: D22, D23, D24, G34, J24, J31, J62, L22, L23, M12, M54

Suggested Citation

Coraggio, Luca and Pagano, Marco and Scognamiglio, Annalisa and Tåg, Joacim, JAQ of All Trades: Job Mismatch, Firm Productivity and Managerial Quality (October 22, 2022). IFN Working Paper No. 1427, Available at SSRN: https://ssrn.com/abstract=4069721 or http://dx.doi.org/10.2139/ssrn.4069721

Luca Coraggio

University of Naples Federico II - Department of Economics and Statistics ( email )

Via Cintia 26
Napoli
Italy

CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF) ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

Marco Pagano (Contact Author)

Einaudi Institute for Economics and Finance (EIEF)

Via Sallustiana, 62
Rome, 00187
Italy

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http:/www.ecgi.org

CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF) ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

Annalisa Scognamiglio

CSEF ( email )

Via Cintia
Naples, 80126
Italy

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

CSEF - University of Naples Federico II - Centre for Studies in Economics and Finance (CSEF) ( email )

Via Cintia
Complesso Monte S. Angelo
Naples, Naples 80126
Italy

Joacim Tåg

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Hanken School of Economics ( email )

PB 287
Helsinki, Vaasa 65101
Finland

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