Full Citation

Title: Asymmetric Information between Employers

Citation Type: Journal Article

Publication Year: 2013

ISBN:

ISSN:

DOI: 10.1257/app.5.4.165

NSFID:

PMCID:

PMID:

Abstract: This study explores whether potential employers have the same information about worker ability as the incumbent firm. I develop a model of asymmetric learning that nests the symmetric learning case and allows the degree of asymmetry to vary. I then show how predictions in the model can be tested with compensation data. Using the NLSY, I test the model and find strong support for asymmetric information. My estimates imply that in one period, outside firms reduce the average expectation error over worker ability by only a third of the reduction made by incumbent firms.

Url: https://www.aeaweb.org/articles?id=10.1257/app.5.4.165

User Submitted?: No

Authors: Kahn, Lisa B

Periodical (Full): American Economic Journal: Applied Economics

Issue: 4

Volume: 5

Pages: 165-205

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: