Wages, Mobility and Firm Performance: Advantages and Insights from Using Matched Worker-Firm Data

41 Pages Posted: 2 Jun 2006

See all articles by John M. Abowd

John M. Abowd

U.S. Census Bureau; Cornell University Department of Economics; Labor Dynamics Institute; School of Industrial and Labor Relations; NBER (on leave); CREST; IZA Institute of Labor Economics

Francis Kramarz

Independent

Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Abstract

To illustrate the wide applicability of longitudinal matched employer-employee data, we study the simultaneous determination of worker mobility and wage rates using an econometric model that allows for both individual and firm-level heterogeneity. The model is estimated using longitudinally linked employeremployee data from France. Structural results for mobility show remarkable heterogeneity with both positive and negative duration dependence present in a significant proportion of firms. The average structural returns to seniority are essentially zero, but this result masks enormous heterogeneity with positive seniority returns found in low starting-wage firms.

Suggested Citation

Abowd, John Maron and Kramarz, Francis and Roux, Sébastien, Wages, Mobility and Firm Performance: Advantages and Insights from Using Matched Worker-Firm Data. Economic Journal, Vol. 116, No. 512, pp. F245-F285, June 2006, Available at SSRN: https://ssrn.com/abstract=905970 or http://dx.doi.org/10.1111/j.1468-0297.2006.01099.x

John Maron Abowd (Contact Author)

U.S. Census Bureau ( email )

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NBER (on leave) ( email )

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CREST ( email )

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IZA Institute of Labor Economics

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Francis Kramarz

Independent

Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

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