Presented By: Department of Economics
Reveal or Conceal? Employer Learning in the Labor Market for Computer Scientists
Alice Wu, University of Wisconsin–Madison
This paper tests for employer learning about worker ability and quantifies the impact of learning on job mobility and innovation output in the labor market for computer scientists. I match the job history of over 40,000 Ph.D. computer scientists (CS) with publications and patent applications that signal their research ability. Workers who publish at CS conferences are 45% more likely to move into a top tech firm in the next year than similar coworkers without such a public signal. Higher-quality papers are often filed as patent applications, but the fact of filing remains private information at the incumbent employer for 18 months. Authors of such papers experience a delayed increase in upward mobility. Without employer learning from the public research records, innovation output by early career computer scientists would drop by 15% due to greater misallocation of talent. Reducing asymmetric information between employers can expedite positive assortative matching and increase innovation by 5%.
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