Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201473
Authors: 
Friedrich, Benjamin
Laun, Lisa
Meghir, Costas
Pistaferri, Luigi
Year of Publication: 
2019
Series/Report no.: 
Working Paper 2019:9
Abstract: 
We use matched employer-employee data from Sweden to study the role of the firm in affecting the stochastic properties of wages. Our model accounts for endogenous participation and mobility decisions. We find that firm-specific permanent productivity shocks transmit to individual wages, but the effect is mostly concentrated among the high-skilled workers; firm-specific temporary shocks mostly affect the low-skilled. The updates to worker-firm specific match effects over the life of a firm-worker relationship are small. Substantial growth in earnings variance over the life cycle for high-skilled workers is driven by firms accounting for 44% of cross-sectional variance by age 55.
Subjects: 
Income process
Wage dynamics
Firm dynamics
JEL: 
H51
H55
I18
J26
Document Type: 
Working Paper
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