Dynamic Matching and Evolving Reputations

摘要: This paper introduces a general model of matching that includes evolving public Bayesian reputations and stochastic production. Despite productive complementarity, assortative robustly fails for high discount factors, unlike in Becker (1973). failure holds around the highest (lowest) reputation agents “high skill” (“low skill”) technologies. We find matches likes eventually dissolve. In another life-cycle finding, young workers are paid less than their marginal product, old more. Also, wages rise with tenure but need not reflect products: information rents produce non-monotone discontinuous wage profiles.