%0 Report
        %A Andrews, Martyn J.
%A Gill, Leonard
%A Schank, Thorsten
%A Upward, Richard
        %T High Wage Workers Match with High Wage Firms: Clear Evidence of the Effects of Limited Mobility Bias
        %D 2012
        %8 2012 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 6662
        %U https://www.iza.org/index.php/publications/dp6662
        %X Positive assortative matching implies that high productivity workers and firms match together. However, there is almost no evidence of a positive correlation between the worker and firm contributions in two-way fixed-effects wage equations. This could be the result of a bias caused by standard estimation error. Using German social security records we show that the effect of this bias is substantial in samples with limited inter-firm movement. The correlation between worker and firm contributions to wage equations is unambiguously positive.
        %K fixed effects
%K linked employer-employee panel data
%K limited mobility bias