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How to Improve Worker-Firm Matching: Evidence from a Temporary Foreign Worker Market

Author

Listed:
  • Cho, Yoon Y.

    (World Bank)

  • Lee, Soohyung

    (Seoul National University)

Abstract
This paper investigates the role of worker-firm matching algorithms in accounting for early job separation rates. For this purpose, we examine Korea’s temporary foreign worker program in which the government classifies firms by priority levels and matches them with foreign workers based on their stated preferences. Using administrative data, we examine predictors for the job separation rates and propose alternative matching methods using the serial dictatorship. Our simulation results show that alternative matching methods can substantially reduce job separation rates, suggesting a possible improvement of the Korean program.

Suggested Citation

  • Cho, Yoon Y. & Lee, Soohyung, 2021. "How to Improve Worker-Firm Matching: Evidence from a Temporary Foreign Worker Market," IZA Discussion Papers 14328, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14328
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    File URL: https://docs.iza.org/dp14328.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    job matching; temporary immigrants; migration; market design; employment permit system;
    All these keywords.

    JEL classification:

    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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