%0 Report %A Abowd, John M. %A Kramarz, Francis %A Pérez-Duarte, Sébastien %A Schmutte, Ian M. %T Sorting Between and Within Industries: A Testable Model of Assortative Matching %D 2014 %8 2014 Aug %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 8439 %U https://www.iza.org/publications/dp8439 %X We test for sorting of workers between and within industrial sectors in a directed search model with coordination frictions. We fit the model to sector-specific vacancy and output data along with publicly-available statistics that characterize the distribution of worker and employer wage heterogeneity across sectors. Our empirical method is general and can be applied to a broad class of assignment models. The results indicate that industries are the loci of sorting-more productive workers are employed in more productive industries. The evidence confirms assortative matching can be present even when worker and employer components of wage heterogeneity are weakly correlated. %K industries %K sorting