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

Yoon Y. Cho () and Soohyung Lee ()
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Yoon Y. Cho: World Bank
Soohyung Lee: Seoul National University

No 14328, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: job matching; temporary immigrants; migration; market design; employment permit system (search for similar items in EconPapers)
JEL-codes: J4 J6 O15 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2021-04
New Economics Papers: this item is included in nep-lab, nep-mig and nep-ore
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Published - published in: Korean Economic Review, 2021, 37 (2), 419-454

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