controlled for there is a further pervasive source of bias, namely the co-movement of firm employment and firm wages. In a simple … aggregate or firm level) to firm's employment and wages cause downward bias in OLS regression estimates of RTT. We show that the … identified. We argue that if a reduced form estimation of RTT is undertaken, firm-year fixed effects must be added in order to …

wage bin throughout the monthly wage distribution. We find that, after one month, wages increased by 17 to 37 percent for …