The Happiness Gains from Sorting and Matching in the Labor Market

Simon Luechinger, Alois Stutzer and Rainer Winkelmann

No 2019, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Sorting of people on the labor market not only assures the most productive use of valuable skills but also generates individual utility gains if people experience an optimal match between job characteristics and their preferences. Based on individual data on reported satisfaction with life it is possible to assess these latter gains from matching. We introduce a two-equation ordered probit model with endogenous switching and study self-selection into government and private sector jobs. We find considerable gains from matching amounting to an increase in the fraction of very satisfied workers from 53.8 to 58.8 percent relative to a hypothetical random allocation of workers to the two sectors.

Keywords: matching; ordered probit; public sector employment; selection; subjective well-being; switching regression (search for similar items in EconPapers)
JEL-codes: D60 I31 J24 J45 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2006-03
New Economics Papers: this item is included in nep-dcm, nep-lab, nep-soc and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Research in Labor Economics, 2010, 30, 233–251

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Related works:
Working Paper: The happiness gains from sorting and matching in the labor market (2007)
Working Paper: The Happiness Gains from Sorting and Matching in the Labor Market (2007)
Working Paper: The Happiness Gains From Sorting and Matching in the Labor Market (2006)
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