Article ID Journal Published Year Pages File Type
5060340 Economics Letters 2013 5 Pages PDF
Abstract
► We model wage sorting as the correlation between the worker and firm fixed effect from a wage equation. ► The cross-sectional correlation is increasing from a low −0.07 in 1981 to a high 0.14 in 2001. ► This finding is not driven by changes in the workforce in terms of gender, age, and education. ► The increasing wage sorting is in part driven by the exit/entry of workers and by worker reallocation. ► The increasing sorting comprises 41% of the increase in the std. dev. of log wages
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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