Dynamic Matching and Evolving Reputations

S-Tier
Journal: Review of Economic Studies
Year: 2010
Volume: 77
Issue: 1
Pages: 3-29

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper introduces a general model of matching that includes evolving public Bayesian reputations and stochastic production. Despite productive complementarity, assortative matching robustly fails for high discount factors, unlike in <xref ref-type="bibr" rid="R3">Becker (1973)</xref>. This failure holds around the highest (lowest) reputation agents for "high skill" ("low skill") technologies. We find that matches of likes eventually dissolve. In another life-cycle finding, young workers are paid less than their marginal product, and old workers more. Also, wages rise with tenure but need not reflect marginal products: information rents produce non-monotone and discontinuous wage profiles. Copyright , Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:77:y:2010:i:1:p:3-29
Journal Field
General
Author Count
2
Added to Database
2026-01-24