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TOPIC:
SPATIAL FRICTIONS IN THE MARKET FOR TALENT
ABSTRACT
We document new stylized facts for migration patterns of high-skilled, highly specialized workers. Using data on careers on the universe of professional football players, we show spatial, cultural, and legal frictions impede positive assortative matching. We then set up a matching model that yields a gravity equation at the worker-firm-level. Estimating and quantifying the model supports the notion of the strong impact of gravity frictions on worker-firm matching. Using the model’s structure we can simulate hypothetical allocations of players to firms with counterfactual frictions.