How Much Should We Trust Estimates of Firm Effects and Worker Sorting?

• 成果类型: Article; Early Access
• 署名作者: Bonhomme, Stephane; Holzheu, Kerstin; Lamadon, Thibaut; Manresa, Elena; Mogstad, Magne; Setzler, Bradley
• 署名单位: University of Chicago; Institut d'Etudes Politiques Paris (Sciences Po); New York University; Statistics Norway; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/720009
• 发表日期: 2023
• 关键词: high wage workers; mobility; match

摘要

Many studies use matched employer-employee data to estimate a statistical model of earnings determination with worker and firm fixed effects. Estimates based on this model have produced influential yet controversial conclusions. The objective of this paper is to assess the sensitivity of these conclusions to the biases that arise because of limited mobility of workers across firms. We use employer-employee data from the United States and several European countries while taking advantage of both fixed effects and random effects methods for bias correction. We find that limited mobility bias is severe and that bias correction is important.