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Wage sorting trends

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  • Bagger, Jesper
  • Sørensen, Kenneth L.
  • Vejlin, Rune

Abstract

We document a strong trend towards more positive assortative wage sorting using Danish Matched Employer–Employee data from 1980 to 2006. The pattern is not due to compositional changes in the labor market and primarily occurs among high wage workers.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 118 (2013)
Issue (Month): 1 ()
Pages: 63-67

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Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:63-67

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Matched employer–employee data; Firm fixed effects; Worker fixed effects; Wage sorting; Wage inequality;

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References

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  1. Jan Eeckhout & Philipp Kircher, 2011. "Identifying Sorting--In Theory," Review of Economic Studies, Oxford University Press, vol. 78(3), pages 872-906.
  2. Francesco Devicienti & Cristian Bartolucci, 2013. "Better Workers Move to Better Firms: A Simple Test to Identify Sorting," 2013 Meeting Papers 249, Society for Economic Dynamics.
  3. Dirk Krueger & Fabrizio Perri & Luigi Pistaferri & Giovanni L. Violante, 2009. "Cross Sectional Facts for Macroeconomists," NBER Working Papers 15554, National Bureau of Economic Research, Inc.
  4. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
  5. 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.
  6. Max Gruetter & Rafael Lalive, . "The Importance of Firms in Wage Determination," IEW - Working Papers 207, Institute for Empirical Research in Economics - University of Zurich.
  7. M. J. Andrews & L. Gill & T. Schank & R. Upward, 2008. "High wage workers and low wage firms: negative assortative matching or limited mobility bias?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 673-697.
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Cited by:
  1. Card, David & Heining, Jörg & Kline, Patrick, 2012. "Workplace heterogeneity and the rise of West German wage inequality," IAB Discussion Paper 201226, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Michele Battisti, 2013. "High Wage Workers and High Wage Peers," Ifo Working Paper Series Ifo Working Paper No. 168, Ifo Institute for Economic Research at the University of Munich.

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