Advanced Search
MyIDEAS: Login to save this paper or follow this series

Wage Sorting Trends

Contents:

Author Info

  • Jesper Bagger

    (Royal Holloway College, UK)

  • Rune Vejlin

    ()
    (Department of Economics and Business, Aarhus University, Denmark)

  • Kenneth L. Sørensen

    (Department of Economics and Business, Aarhus University, Denmark)

Abstract

Using a population-wide Danish Matched Employer-Employee panel from 1980-2006, we document a strong trend towards more positive assortative wage sorting. The correlation between worker and firm fixed effects estimated from a log wage regression increases from -0.07 in 1981 to .14 in 2001. The nonstationary wage sorting pattern is not due to compositional changes in the labor market, primarily occurs among high wage workers, and comprises 41 percent of the increase in the standard deviation of log real wages between 1980 and 2006. We show that the wage sorting trend is associated with worker reallocation via voluntary quits.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp.econ.au.dk/afn/wp/12/wp12_17.pdf
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2012-17.

as in new window
Length: 15
Date of creation: 09 Aug 2012
Date of revision:
Handle: RePEc:aah:aarhec:2012-17

Contact details of provider:
Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Matched Employer-Employee Data; Firmfixed effects; Worker fixed effects; Wage sorting; Wage inequality; Voluntary quits.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. 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.
  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. Gruetter, Max & Lalive, Rafael, 2004. "The Importance of Firms in Wage Determination," IZA Discussion Papers 1367, Institute for the Study of Labor (IZA).
  4. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
  5. Krueger, Dirk & Perri, Fabrizio & Pistaferri, Luigi & Violante, Giovanni L, 2009. "Cross Sectional Facts for Macroeconomists," CEPR Discussion Papers 7582, C.E.P.R. Discussion Papers.
  6. Philipp Kircher & Jan Eeckhout, 2009. "Identifying Sorting, In Theory," 2009 Meeting Papers 581, Society for Economic Dynamics.
  7. 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.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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.
  2. 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].

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aah:aarhec:2012-17. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.