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Mixed-Effects Methods for Search and Matching Research

Author

Listed:
  • John M. Abowd
  • Kevin L. McKinney

Abstract

We study mixed-effects methods for estimating equations containing person and firm effects. In economics such models are usually estimated using fixed- effects methods. Recent enhancements to those fixed-effects methods include corrections to the bias in estimating the covariance matrix of the person and firm effects, which we also consider. JEL Codes: J3, C5.

Suggested Citation

  • John M. Abowd & Kevin L. McKinney, 2024. "Mixed-Effects Methods for Search and Matching Research," Revue économique, Presses de Sciences-Po, vol. 75(1), pages 55-72.
    • Handle: RePEc:cai:recosp:reco_751_0055
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    References listed on IDEAS

    as
    1. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
    2. John M. Abowd & Kevin L. McKinney & Nellie L. Zhao, 2018. "Earnings Inequality and Mobility Trends in the United States: Nationally Representative Estimates from Longitudinally Linked Employer-Employee Data," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 183-300.
    3. Dale T. Mortensen, 2005. "Wage Dispersion: Why Are Similar Workers Paid Differently?," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633191, December.
    4. Woodcock, Simon D., 2008. "Wage differentials in the presence of unobserved worker, firm, and match heterogeneity," Labour Economics, Elsevier, vol. 15(4), pages 771-793, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    mixed-effects models; generalized linear models;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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