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No Line Left Behind

Assortative Matching Inside the Firm

Bibliographic Data

ID19313718
AuthorsAchyuta Adhvaryu (University of California at San Diego [email protected]), Vittorio Bassi (University of Southern California [email protected]), Anant Nyshadham (0000-0001-9165-5528, University of Michigan [email protected]), Jorge Tamayo (0000-0002-8410-264X, Harvard Business School [email protected])
Year2024
Pages1-45
Publication date2024-10-29
Open AccessNo
TypeARTICLE
VenueThe Review of Economics and Statistics (JOURNAL)
Journal identifiersISSN: 0034-6535 • E-ISSN: 1530-9142
PublisherMIT Press (PUBLISHER • US)
DOI10.1162/rest_a_01516
OpenAlexW3151633646
LanguageEN
Citations received1

We leverage the high degree of worker mobility across production lines in a large Indian manufacturer to estimate the sorting of workers to managers, using data on daily worker productivity. We find negative assortative matching (NAM): better workers tend to be matched with worse managers. Estimates of the production technology, however, reveal that productivity would increase by up to 4% under positive sorting. Exploiting a survey of managers and data on orders from multinational brands, we document that NAM arises, at least partly, because maintaining valuable relationships with buyers provides strong incentives to avoid delays on any given production line

Economics · Geometry · Line (geometry) · Matching (statistics) · Statistics · Corporate Finance and Governance · Law, Economics, and Judicial Systems · Mathematics

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Citations per year1
Citation span2025 - 2025 (1)
Highly citedNo

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