Compensation policies within firms: evidence from linked employer‐employee data

Purpose – The purpose of this paper is to introduce this special issue on compensation policies within firms while using evidence from linked employer‐employee data. Design/methodology/approach – The paper looks at the use of linked employer‐employee data over time and how this has enabled progress in the understanding of the functioning of the labour market as the arena where labour supply and demand interact, under the mediation of labour market institutions and regulations. Findings – The example of issues that have been covered using linked employer‐employee data, generating new insights, could be extended and it is continuously being updated. Originality/value – The articles collected in this special issue provide some fine examples of recent work on the field of linked employer‐employee data.