Andrews, M. J.; Gill, L.; Schank, T.; Upward, R. - In: Journal of the Royal Statistical Society Series A 171 (2008) 3, pp. 673-697
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...