Code for: Search, Screening and Sorting

We examine how search frictions impact labor market sorting by constructing a model consistent with recent evidence that employers collect a pool of applicants before interviewing a subset. We derive the necessary and sufficient conditions for sorting in both applications and matches. Positive sorting is obtained when production complementarities outweigh a force against sorting measured by a (novel) quality-quantity elasticity. Interestingly, the production complementarities needed for positive sorting depend on the population fraction of high-type workers and can be increasing in the number of inter-views. Our model shows how policies like Ban the Box can backfire because when attractive firms can no longer perfectly screen certain workers, they may discourage them from applying.<br><br>