adjustment. At the extensive margin, moving tasks offshore destroys jobs. At the intensive margin, due to higher productivity of …

Positive assortative matching implies that high productivity workers and firms match together. However, there is almost …

matching rate in the high-productivity sector can then be realized with fewer applications (and consequently fewer coordination …In this paper we study the allocation of workers over high and low productivity firms in a labor market with … coordination frictions. Specifically, we consider a search model where workers can apply to high and or low productivity firms …

transitions, and this allows for estimation of the degree of search frictions. The firm data are informative on labor productivity … difference between labor productivity and wages in a market depends on the degree of frictions and other determinants. We correct … explanations for) positive assortative matching. …