We reconsider the potential for explaining inter-industry wage differences by decomposing those differences into parts due to individual and employer heterogeneity, respectively. Using longitudinally linked employer-employee data, we estimate the model for the United States and France. The part...

The long literatures on the determinants of wage rates at the individual level and on the empirical relation between productivity and wage rates intersect when attention is focused on longitudinally linked employer-employee data. We estimate separate statistical components of wage rates...

We test for sorting of workers between and within industrial sectors in a directed search model with coordination frictions. We fit the model to sector-specific vacancy and output data along with publicly-available statistics that characterize the distribution of worker and employer wage...