Assortative labor matching, city size, and the education level of workers

We investigate the heterogeneity of assortative labor matching with respect to geography, skills, and tasks. Our contribution is separate plant quality by education level occupation tasks using AKM-model. introduce a geology-related instrument analyze city effect address limited mobility bias. Using rich administrative worker-plant dataset for Norway, we show that college educated have strong effect. The IV estimates indicate doubling size increases correlation between worker 9 percentage points. A wage decomposition shows accounts 22% urban premium adjusted sorting. In terms occupations, better in cities observed only non-routine abstract • Study skill-heterogenous relationship size. Assortative concentrates on large cities. Introduce Allow education- task-specific fixed effects.