Seminar: Simeon Alder, University of Nortre Dame.

Title: Capabilities, Complementarity, and Career Choice.

Abstract: I develop a tractable assignment model with symmetric information frictions as in Groes et al. (2009) in order to characterize the interaction between teams of top managers and the firms they run. The equilibrium features assortative matching in expected abilities and career experience. The structural parameters of the model are selected to match empirical moments to their theoretical counterparts using a simulated method of moments (SMM). Based on a matched firm-executive dataset of US corporations, I plan to quantify the effect of talent misallocation on macroeconomic aggregates.