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Practical estimation methods for linked employer-employee data

Richard Upward (), Thorsten Schank () and Martyn J. Andrews

No 29 [rev.], Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Methods for the analysis of linked employer-employee data are not yet available in standard econometrics packages. In this paper, we make the fixed-effects methods developed originally by Abowd, Kramarz, Margolis and others more accessible, where possible, and show how they can be implemented in Stata. To illustrate these techniques, we give an example using German linked data. There is a caveat: when the number of plants is prohibitively large and the investigator wants to estimate the correlation between the worker and firm unobserved heterogeneities, the regressionbased techniques discussed are not feasible. In this version of the paper, we replace our earlier Two-Step estimator by a Classical Minimum Distance estimator.

Keywords: linked employee-employer panel data; fixed effects (search for similar items in EconPapers)
JEL-codes: J30 C87 C23 (search for similar items in EconPapers)
Date: 2005
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Working Paper: Practical estimation methods for linked employer-employee data (2004) Downloads
Working Paper: Practical estimation methods for linked employer-employee data (2004) Downloads
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