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Wages, Mobility and Firm Performance: Advantages and Insights from Using Matched Worker-Firm Data

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  • John M. Abowd
  • Francis Kramarz
  • Sébastien Roux

Abstract

To illustrate the wide applicability of longitudinal matched employer-employee data, we study the simultaneous determination of worker mobility and wage rates using an econometric model that allows for both individual and firm-level heterogeneity. The model is estimated using longitudinally linked employer-employee data from France. Structural results for mobility show remarkable heterogeneity with both positive and negative duration dependence present in a significant proportion of firms. The average structural returns to seniority are essentially zero, but this result masks enormous heterogeneity with positive seniority returns found in low starting-wage firms. Copyright 2006 Royal Economic Society.

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  • John M. Abowd & Francis Kramarz & Sébastien Roux, 2006. "Wages, Mobility and Firm Performance: Advantages and Insights from Using Matched Worker-Firm Data," Economic Journal, Royal Economic Society, vol. 116(512), pages 245-285, June.
  • Handle: RePEc:ecj:econjl:v:116:y:2006:i:512:p:f245-f285
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    References listed on IDEAS

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