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

53 Pages Posted: 8 Apr 2022 Last revised: 25 Apr 2023

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

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

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: April 25, 2023

Abstract

We present a novel measure of job-worker allocation quality (JAQ) by exploiting employer-employee data with machine learning techniques and validate it in various ways. Our measure correlates positively with earnings and negatively with separations over individual workers' careers. At firm level, it increases with competition, non-family firm status, workers’ human capital and has a robust correlation with productivity. The quality of rank-and-file workers' job matches responds positively to improvements in management quality. JAQ can be constructed for any employer-employee data including workers' occupations, and used to explore research questions in organization and labor economics, as well as in corporate finance.

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 (April 25, 2023). 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)

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

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

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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