Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2022-09-01 Number: 22-057/V Author-Name: Thomas Peeters Author-Workplace-Name: Erasmus University Rotterdam Author-Name: Jan C. van Ours Author-Workplace-Name: Erasmus University Rotterdam Title: International Assortative Matching in the European Labor Market Abstract: We investigate whether national borders within Europe hinder the assortative matching of workers to firms in a high skilled labor market. We characterize worker productivity as the ability to contribute to physical output and define firm productivity as the capacity to transform physical output into revenues. We rank workers and firms according to their individual productivity estimates and study the ensuing rank correlation to gauge the degree of assortative matching within and across countries. We find strong evidence for positive assortative matching at the national level, and even more so at the international level. This suggests national borders do not prevent workers and firm from pursuing profitable complementarities in production. Classification-JEL: M51, J63, J24, Z22 Keywords: Assortative matching, international worker mobility, football managers File-URL: https://papers.tinbergen.nl/22057.pdf File-Format: application/pdf File-Size: 1.438.678 bytes Handle: RePEc:tin:wpaper:20220057