Sorting On-Line and On-Time

Abstract

Using proprietary data from a Chilean online job board, we find strong, positive assortative matching at the worker-position level, both along observed dimensions and on unobserved characteristics (OLS Mincer residual wages). We also find that this positive assortative matching is robustly procyclical. Since we use information on job applications instead of final matches, we use the generalized deferred-acceptance algorithm to simulate tentative final allocations. Under all considered scenarios for the algorithm, positive assortative matching is preserved from the application stage to the realized matches.