Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer-Employee Data

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Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions : Evidence from German Linked Employer-Employee Data. / Cornelißen, Thomas; Hübler, Olaf.

In: German Economic Review, Vol. 12, No. 4, 01.11.2011, p. 469-489.

Research output: Contribution to journalArticle

Harvard

Cornelißen, T & Hübler, O 2011, 'Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer-Employee Data', German Economic Review, vol. 12, no. 4, pp. 469-489. https://doi.org/10.1111/j.1468-0475.2010.00528.x

APA

Cornelißen, T., & Hübler, O. (2011). Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer-Employee Data. German Economic Review, 12(4), 469-489. https://doi.org/10.1111/j.1468-0475.2010.00528.x

Vancouver

Cornelißen T, Hübler O. Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer-Employee Data. German Economic Review. 2011 Nov 1;12(4):469-489. https://doi.org/10.1111/j.1468-0475.2010.00528.x

Author

Cornelißen, Thomas ; Hübler, Olaf. / Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions : Evidence from German Linked Employer-Employee Data. In: German Economic Review. 2011 ; Vol. 12, No. 4. pp. 469-489.

Bibtex - Download

@article{43bbf9a4ad524d9391228c725775158c,
title = "Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer-Employee Data",
abstract = "We 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.",
keywords = "C23, J31, J62, J63, Job stability, Linked employer-employee data, Unobserved worker and firm heterogeneity, Wages",
author = "Thomas Corneli{\ss}en and Olaf H{\"u}bler",
year = "2011",
month = "11",
day = "1",
doi = "10.1111/j.1468-0475.2010.00528.x",
language = "English",
volume = "12",
pages = "469--489",
journal = "German Economic Review",
issn = "1465-6485",
publisher = "Wiley-Blackwell",
number = "4",

}

RIS (suitable for import to EndNote) - Download

TY - JOUR

T1 - Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions

T2 - Evidence from German Linked Employer-Employee Data

AU - Cornelißen, Thomas

AU - Hübler, Olaf

PY - 2011/11/1

Y1 - 2011/11/1

N2 - We 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.

AB - We 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.

KW - C23

KW - J31

KW - J62

KW - J63

KW - Job stability

KW - Linked employer-employee data

KW - Unobserved worker and firm heterogeneity

KW - Wages

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U2 - 10.1111/j.1468-0475.2010.00528.x

DO - 10.1111/j.1468-0475.2010.00528.x

M3 - Article

VL - 12

SP - 469

EP - 489

JO - German Economic Review

JF - German Economic Review

SN - 1465-6485

IS - 4

ER -