Bagger, Jesper; Vejlin, Rune; Sørensen, Kenneth L. - School of Economics and Management, University of Aarhus - 2012
positive assortative wage sorting. The correlation between worker and firm fixed effects estimated from a log wage regression … increases from -0.07 in 1981 to .14 in 2001. The nonstationary wage sorting pattern is not due to compositional changes in the … of log real wages between 1980 and 2006. We show that the wage sorting trend is associated with worker reallocation via …