Revealed Preference Job Ladders
Abstract/Contents
- Abstract
- We use novel data on the option sets and choices of job-seekers and recruiting firms to provide new estimates of workers’ preferences over nonwage amenities and firms’ wage markdowns in a high-wage labor market. Building on Ho and Pakes (2014) and Sorkin (2018), we develop estimators of preferences and markdowns with two-sided heterogeneity that rely only on basic revealed preference relations for workers and firms. Relative to standard estimation strategies, our revealed-preference estimators avoid the incidental parameters problem induced by including fixed effects to control for unobserved heterogeneity in outside options and costs. In order to understand the nature of firm wage setting on the platform, we follow Backus, Conlon, and Sinkinson (2021) to test between models of firm conduct. We find that there is meaningful horizontal differentiation of firms: allowing heterogeneity in worker preferences – a small number of discrete preference classes, each associated with a separate ranking of firms – describes choices far better than requiring all workers to share a single common component of utility at each firm: in other words, there are multiple job ladders. Further, we find that observables like age and experience have limited predictive power over preference heterogeneity.
Description
| Type of resource | text |
|---|---|
| Date created | August 26, 2021 |
Creators/Contributors
| Author | Roussille, Nina |
|---|---|
| Author | Scuderi, Benjamin |
| Organizer of meeting | Jarosch, Gregor |
| Organizer of meeting | Sorkin, Isaac |
Subjects
| Subject | economics |
|---|---|
| Genre | Text |
| Genre | Working paper |
| Genre | Grey literature |
Bibliographic information
Access conditions
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- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).
Preferred citation
- Preferred citation
- Roussille, N. and Scuderi, B. (2022). Revealed Preference Job Ladders. Stanford Digital Repository. Available at https://purl.stanford.edu/pd813jk7966
Collection
SITE Conference 2021
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- siteworkshop@stanford.edu
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