High wage workers match with high wage firms: Clear evidence of the effects of limited mobility bias

Arbeitspapier

Positive assortative matching implies that high productivity workers and firms match together. However, there is almost no evidence of a positive correlation between the worker and firm contributions in two-way fixed-effects wage equations. This could be the result of a bias caused by standard estimation error. Using German social security records we show that the effect of this bias is substantial in samples with limited inter-firm movement. The correlation between worker and firm contributions to wage equations is unambiguously positive.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 6662

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand and Supply of Labor: General ; Wages, Compensation, and Labor Costs: General ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Thema: linked employer-employee panel data ; fixed effects ; limited mobility bias ; Lohnkurve ; Arbeitskräfte ; Arbeitsproduktivität ; Unternehmen ; Produktivität ; Matching ; Arbeitsmobilität ; Bias ; Schätzung ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Andrews, Martyn J. ; Gill, Leonard ; Schank, Thorsten ; Upward, Richard
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/62404
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ