TY  - RPRT
        AU  - Böhm, Michael Johannes
AU  - Esmkhani, Khalil
AU  - Gallipoli, Giovanni
        TI  - Firm Heterogeneity in Skill Returns
        PY  - 2023/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16644
        UR  - https://www.iza.org/index.php/publications/dp16644
        AB  - We quantify firm heterogeneity in skill returns and present direct evidence of worker–firm complementarities. Within a model of firms' demand for cognitive and noncognitive attributes we show that identification depends on the availability of skill measures. Linking administrative data to test scores we document worker sorting and convex earnings–skill relationships. We find that: (1) Both skills' returns vary substantially across employers and correlate weakly within-firm. (2) Workers with large endowments of a skill populate firms with higher returns to it. Sorting intensifies with the cross-sectional dispersion of returns. (3) Complementarities and sorting significantly influence the earnings distribution.
        KW  - firm heterogeneity
KW  - skill return
KW  - sorting
KW  - earnings distribution
        ER  -