In the empirical literature on assortative matching using linked employer-employee data, unobserved worker quality appears to be "negatively" correlated with unobserved firm quality. We show that this can be caused by standard estimation error. We develop formulae that show that the estimated...

This article is an example of the type of exercise that is made possible by the existence of the set of UK models at Warwick. Using three quarterly models, those of the London Business School (LBS), the National Institute of Economic and Social Research (NIESR) and Her Majesty's Treasury (HMT),...