By Blair Long, Queen’s University
On Tuesday, May 11, the Queen’s Economics Department (QED) hosted the 12th Frontiers of Macroeconomics workshop (hereafter Frontiers). This conference brings together a diverse collection of contemporary research, exemplifying the frontier of modern macroeconomics. This article summarizes the objectives and findings of some of the conference’s presented work, and provides some commentary on the direction of both theory and methodology in macroeconomics.
What are the Determinants of Worker Job Matches?
Ilse Lindenlaub’s “Multi-Dimensional Sorting of Workers and Jobs in the Data” (with Fabien Postel-Vinay) explores the mobility of workers and asks which worker skills are relevant in the sorting process. By sorting, economists mean how workers move from job to job, each time finding a “better” match, and ultimately finding one that is stable, in the sense that neither the worker nor the job (the firm) expects to prefer another working arrangement. The key methodological contribution is to develop a relatively simple test of how skills drive sorting behaviour, accounting for the considerable heterogeneity of skills. In doing so, the authors break from a standard simplification found in much economic theory: that worker ability (for instance) is one-dimensional. Of course, in the real world, we can group workers according to a near-infinity of skills, such as interpersonal, cognitive, non-cognitive, routine, manual, or creative. Read More »