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The analysis of labor markets using matched employer-employee data

In: Handbook of Labor Economics


  • Abowd, John M.
  • Kramarz, Francis


Matched employer-employee data contain information collected from households and individuals as well as information collected from businesses or establishments. Both administrative and sample survey sources are considered. Both longitudinal and cross-sectional applications are discussed. We review studies from 17 different countries using 38 different systems for creating the linked data. We provide a detailed discussion of the methods used to create the linked datasets, the statistical and economic models used to analyze these data, and a comprehensive set of results from the different countries. We consider compensation structure, wage and employment mobility, and the relation between firm outcomes and worker characteristics in detail. Matched employer-employee data provide the empirical basis for further refinements of the theory of workplace organization, compensation design, mobility and production; however, the arrival of these data has been relatively recent.

Suggested Citation

  • Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710, Elsevier.
  • Handle: RePEc:eee:labchp:3-40

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    JEL classification:

    • J0 - Labor and Demographic Economics - - General


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