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Title: Asymmetric Information between Employers
Resulting in 1 citation.
1. Kahn, Lisa B.
Asymmetric Information between Employers
American Economic Journal: Applied Economics 5,4 (October 2013): 165-205.
Cohort(s): NLSY79
Publisher: American Economic Association
Keyword(s): Firms; Learning, Asymmetric; Skills; Workers Ability

Permission to reprint the abstract has not been received from the publisher.

This study explores whether potential employers have the same information about worker ability as the incumbent firm. I develop a model of asymmetric learning that nests the symmetric learning case and allows the degree of asymmetry to vary. I then show how predictions in the model can be tested with compensation data. Using the NLSY, I test the model and find strong support for asymmetric information. My estimates imply that in one period, outside firms reduce the average expectation error over worker ability by only a third of the reduction made by incumbent firms.
Bibliography Citation
Kahn, Lisa B. "Asymmetric Information between Employers." American Economic Journal: Applied Economics 5,4 (October 2013): 165-205.