The aim of this project is to precisely estimate the value of an employee-employer match to the worker and to the firm, over the business cycle and across worker and firm characteristics. To this end, we propose a general model of the labor market with heterogeneous firms and workers as well as aggregate uncertainty to derive measurement equations for the values of a match for both the worker and the firm. We then estimate these values using matched employer-employee data from France. Not knowing how these vary over the business cycle across different workers and firms is costly because it can potentially lead to miscalculating the effects of policy such as unemployment benefits.
The value of an employee-employer match to the worker and to the firm
Data provided through CASD (6)