@TechReport{iza:izadps:dp3076, author={Aguilar, Giovanna and Rendon, Silvio}, title={Matching Bias in Labor Demand Estimation}, year={2007}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={3076}, url={https://www.iza.org/publications/dp3076}, abstract={Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand.}, keywords={labor demand estimation;employment;matching}, }