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- W2185505587 abstract "In large rms, management resolves a trade o between hiring more versus better workers. The span of control or size is therefore intimately intertwined with the sorting pattern. Span of control is at the center of many studies in macroeconomics, comparisons of factor productivity, trade, and labor. With heterogeneous workers, we analyze the worker assignment, rm size, and wages. The pattern of sorting between workers and rms is governed by an intuitive cross-margin-complementarity condition that captures the complementarities between qualities (of workers and rms), and quantities (of the work force and rm resources). A simple system of two dierential equations determines the equilibrium allocation, rm size and wages. We can analyze the impact of technological change: skill-biased change aects wages and increases the skill premium; quantity-biased change aects rm size, especially of productive rms. We also introduce search frictions and investigate how unemployment varies across skills and how vacancies vary across rm size." @default.
- W2185505587 created "2016-06-24" @default.
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- W2185505587 date "2012-02-01" @default.
- W2185505587 modified "2023-09-23" @default.
- W2185505587 title "Assortative Matching with Large Firms: Span of Control over More versus Better Workers" @default.
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