We characterize the employment value of different worker-occupation matches and estimate the substitutability of match-specific inputs in production. In an equilibrium model of the U.S. labor market, we examine the responses of employment and wages to shifts in technology and match values. Earnings are mainly driven by technology while match value heterogeneity influences the distribution of workers across occupations. The model delivers measures of rents and compensating differentials. After 1980, employment rents increased for educated workers but stagnated for others. Compensating differentials have risen on average, particularly in occupations where worker mobility has grown.

This paper examines the effects of geographic heterogeneity in occupational returns on marriage market outcomes and the impact of family formation on the geographic allocation of labor. We document that geographically mismatched workers - those living in a location that pays relatively lower wages to their occupation - are less likely to marry and more likely to divorce. We develop and estimate a model of migration and family formation. We assess individual and aggregate implications of joint marriage and location choices through counterfactual experiments. We find that, in aggregate, the marriage-market amenity enhances productivity by attracting workers to high-return locations.