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Article . 2024 . Peer-reviewed
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Article . 2025 . Peer-reviewed
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https://doi.org/10.21034/iwp.8...
Article . 2024 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2024 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2024 . Peer-reviewed
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Research . 2025
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Research . 2024
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Meritocracy Across Countries

Authors: Bandiera, Oriana; Kotia, Ananya; Lindenlaub, Ilse; Moser, Christian; Prat, Andrea;

Meritocracy Across Countries

Abstract

We study the micro sources and macro consequences of worker–job matching across countries with large income differences. Using internationally comparable data on over 120,000 individuals in 30 countries, we document that workers' skills align more closely with their jobs' skill requirements in higher-income countries, indicative of more meritocratic labor market matching. We interpret this fact through an equilibrium matching model with cross-country differences in three fundamentals: (i) endowments of worker skills and job requirements determining match feasibility; (ii) technology determining the returns to matching; and (iii) idiosyncratic frictions capturing how nonproductive traits affect matching. A development-accounting exercise based on the model, estimated separately for each country, shows that variation in matching frictions explains only a small share of cross-country output gaps. However, improved worker–job matching substantially amplifies the gains from adopting frontier endowments and technology.

Keywords

skills, O11, O12, wage inequality, ddc:330, matching, J24, migration, misallocation, development accounting, multidimensional heterogeneity, gender, multidimensional skills, E24, J31, sorting, C78

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
9
Top 10%
Average
Top 10%
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