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Since then, labor mobility across work organizations has been boosted (Li 2013), leading labor-sorting processes to make the role in channeling higher quality workers into larger organizations.
Sorting and selection mechanisms channel higher quality workers with higher levels of both measured and unmeasured human capital to larger organizations.
Recall that one explanation for observed size-earnings relation is that sorting and selection mechanisms channel higher quality workers with higher levels of both measured and unmeasured human capital to larger organizations.
As labor mobility was still quite limited during this period, labor-sorting processes that are thought to channel higher quality workers into larger work organizations had little applicability to urban China in 1996.
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