Research output: Contribution to journal › Article › peer-review
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 journal › Article › peer-review
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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
UR - http://www.scopus.com/inward/record.url?scp=80053575457&partnerID=8YFLogxK
U2 - 10.1111/j.1468-0475.2010.00528.x
DO - 10.1111/j.1468-0475.2010.00528.x
M3 - Article
AN - SCOPUS:80053575457
VL - 12
SP - 469
EP - 489
JO - German Economic Review
JF - German Economic Review
SN - 1465-6485
IS - 4
ER -