Abowd, John M.; Kramarz, Francis; Margolis, David N. - In: Econometrica 67 (1999) 2, pp. 251-334
Using a longitudinal sample of one million French workers and 500,000 employing firms, the authors decompose real total annual compensation per worker into components: observable employee characteristics, personal heterogeneity, firm heterogeneity, and residual. Unobserved personal heterogeneity...