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

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  • Andrews, M.J.
  • Gill, L.
  • Schank, T.
  • Upward, R.

Abstract

Limited Mobility Bias explains why positive assortative matching is not observed in the empirical literature. Using German social security records, we estimate the correlation between worker and firm contributions to wage equations and find that it is unambiguously positive.

Suggested Citation

  • Andrews, M.J. & Gill, L. & Schank, T. & Upward, R., 2012. "High wage workers match with high wage firms: Clear evidence of the effects of limited mobility bias," Economics Letters, Elsevier, vol. 117(3), pages 824-827.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:824-827
    DOI: 10.1016/j.econlet.2012.07.033
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    More about this item

    Keywords

    Employer–employee panels; Limited mobility bias; Positive assortative matching;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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