The method introduced in this paper contributes to the estimation of production functions by embedding them in a structural equation system involving worker, firm, time, and occupation effects from an individual wage decomposition and accounting for labor input components that are substitutes...

Firm labor productivity and average wages paid by firms vary considerably and are positively correlated. These observations can be rationalized either by exogenous TFP heterogeneity in firm productivity coupled with rent sharing or by differences in capital intensity and in the quality of labor...

We introduce a general framework to analyze the trade-off between education and family size. Our framework incorporates parental preferences for birth order and delivers theoretically consistent birth order and family size effects on children's educational attainment. We develop an empirical...

This paper studies wage dispersion in an equilibrium on-the-job-search model with endogenous search intensity. Workers differ in their permanent skill level and firms differ with respect to productivity. Positive (negative) sorting results if the match production function is supermodular...

Using a population-wide Danish Matched Employer-Employee panel from 1980-2006, we document a strong trend towards more 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...

This paper studies wage dispersion in an equilibrium on-the-job-search model with endogenous search intensity. Workers differ in their permanent skill level and firms differ with respect to productivity. Positive (negative) sorting results if the match production function is supermodular...

The paper presents a general equilibrium model with search on the job. Workers differ in terms of skill levels and firms differ in terms of productivity. Depending on the production function characteristics, sorting in matching may occur. The paper estimates the model on Danish match data and...

We introduce a general framework to analyze the trade-off between education and family size. Our framework incorporates parental preferences for birth order and delivers theoretically consistent birth order and family size effects on children's educational attainment. We develop an empirical...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>The number of empirical studies in personnel economics using administrative data has grown rapidly in recent years. We survey the use of administrative data to examine employment contracts. Specifically, we consider three types of data that have been widely...</p>

We document a strong trend towards more positive assortative wage sorting using Danish Matched Employer–Employee data from 1980 to 2006. The pattern is not due to compositional changes in the labor market and primarily occurs among high wage workers.