TY  - RPRT
        AU  - Andrews, Martyn J.
AU  - Gill, Leonard
AU  - Schank, Thorsten
AU  - Upward, Richard
        TI  - High Wage Workers Match with High Wage Firms: Clear Evidence of the Effects of Limited Mobility Bias
        PY  - 2012/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6662
        UR  - https://www.iza.org/index.php/publications/dp6662
        AB  - 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.
        KW  - fixed effects
KW  - linked employer-employee panel data
KW  - limited mobility bias
        ER  -