scholarly journals Unobserved Individual and Firm Heterogeneity in Wage and Tenure Functions: Evidence from German Linked Employer-Employee Data

2007 ◽  
Author(s):  
Thomas Cornelißen ◽  
Olaf Hübler
Econometrica ◽  
2019 ◽  
Vol 87 (3) ◽  
pp. 699-739 ◽  
Author(s):  
Stéphane Bonhomme ◽  
Thibaut Lamadon ◽  
Elena Manresa

We propose a framework to identify and estimate earnings distributions and worker composition on matched panel data, allowing for two‐sided worker‐firm unobserved heterogeneity and complementarities in earnings. We introduce two models: a static model that allows for nonlinear interactions between workers and firms, and a dynamic model that allows, in addition, for Markovian earnings dynamics and endogenous mobility. We show that this framework nests a number of structural models of wages and worker mobility. We establish identification in short panels, and develop tractable two‐step estimators where firms are classified in a first step. Applying our method to Swedish administrative data, we find that log‐earnings are approximately additive in worker and firm heterogeneity. Our estimates imply the presence of strong sorting patterns between workers and firms, and a small contribution of firms—net of worker composition—to earnings dispersion. In addition, we document that wages have a direct effect on mobility, and that, beyond their dependence on the current firm, earnings after a job move also depend on the previous employer.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oskar Jost

PurposeAssess and compare scarring effects of unemployment in Germany to other countries and to consider firm heterogeneity.Design/methodology/approachThe author uses linked employer-employee data to analyze the effect of unemployment and its duration on future wages in Germany. Using administrative data on workers and firms in Germany and considering registered and unregistered unemployment episodes, the results show long-lasting wage losses caused by unemployment incidences. Furthermore, the estimations indicate that unemployment duration as well as selectivity into firms paying lower wages is of particular relevance for the explanation of wage penalties of re-employed workers.FindingsUnemployment causes massive and persistent wage declines in the future, which depend on the unemployment duration. Furthermore, reduced options of unemployed workers and selectivity in firms contribute to a large part of unemployment scarring.Practical implicationsFindings are relevant for current debates on unemployment and can help design measures to avoid huge costs of unemployment.Originality/valueThis paper analyses long-term unemployment scarring by considering not only unemployment duration but also selectivity in firms and its effect on the scarring effect.


2013 ◽  
Vol 103 (3) ◽  
pp. 214-219 ◽  
Author(s):  
Anders Akerman ◽  
Elhanan Helpman ◽  
Oleg Itskhoki ◽  
Marc-Andreas Muendler ◽  
Stephen Redding

Recent theories of firm heterogeneity emphasize between-firm wage differences as a new mechanism through which trade can affect wage inequality. Using linked employer-employee data for Sweden, we show that many of the stylized facts about wage inequality found in Helpman et al. (2012) for Brazil also hold for Sweden. Much of overall wage inequality arises within sector-occupations and for workers with similar observable characteristics. One notable difference is a smaller contribution from between-firm differences in wages in Sweden, which could reflect the influence of Swedish labor market institutions in dampening the scope for variation in wages between firms through collective wage agreements.


2011 ◽  
Vol 12 (4) ◽  
pp. 469-489 ◽  
Author(s):  
Thomas Cornelißen ◽  
Olaf Hübler

AbstractWe analyse the correlations between individual and firm fixed effects, and wage and job-duration functions. Our results for large firms suggest that low-wage firms tend to be stable firms, suggesting that lower wages can buy job stability. Furthermore, high-wage workers sort into the stable low-wage firms. Our interpretation is that high-wage workers have a higher wage to insure against job loss and can afford more easily to forgo wages in favour of job stability. This may provide an explanation of the puzzle identified in previous literature that high-wage workers are matched to low-wage firms.


2019 ◽  
Vol 11 (1) ◽  
pp. 8-19
Author(s):  
Crystal Jelita Lumban Tobing

 KPPN Medan II is one of the government organization units at the Ministry of Finance. Where leaders and employees who work at KPPN Medan II always carry out official trips between cities and outside the city. With these conditions, making SPPD documents experiencing the intensity of official travel activities carried out by employees of KPPN Medan II can be said frequently. So that in making SPPD in KPPN Medan II is still using the manual method that is recording through Microsoft Word which in the sense is less effective and efficient. In naming employees who get official assignments, officers manually entering employee data that receives official travel letters are prone to being lost because data is manually written. The web-based SPPD application is built by applying this prototyping method which is expected to facilitate SPPD KPPN Medan II management officers in making SPPD that is effective, efficient, accurate, time-saving, and not prone to losing SPPD data of KPPN Medan II employees who will has made official trips due to the existence of a special database to accommodate all SPPD files.


2013 ◽  
Vol 52 (2) ◽  
pp. 97-126 ◽  
Author(s):  
Zara Liaqat

Using a sample of 321 textile and clothing companies for the years 1992 to 2010, this paper analyses the effect of quota phase-outs on firm-level efficiency in Pakistan following the end of the Multi-Fibre Arrangement (MFA). It highlights sectoral heterogeneity within the manufacturing industry as a result of MFA expiration. The empirical methodology uses the structural techniques proposed by Olley and Pakes (1996), and Levinsohn and Petrin (2003) in order to take care of endogeneity in the estimation of production functions. The results differ for the two industries: MFA expiration lead to an increase in the average productivity of textile producing firms but a significant reduction in the mean productivity of clothing producers. We offer a number of explanations for this outcome, such as a change in the input and product mix, entry by non-exporters in the clothing sector, and sectoral differences in quality ladders. A number of crucial policy lessons can be drawn from the findings of this study. JEL Classification:F13; F14; D24; C14; O19 Keywords: Multi-Fibre Arrangement, Trade Liberalisation, Productivity, Firm Heterogeneity, Simultaneity and Production Functions, Endogeneity of Protection


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