This empirical paper investigates skill formation in the youth labour market. Using event-history data collected from the administrative records of Lancashire Careers Service, we model "training preferences" formed at school by young people and "training destinations", ie the occupation of the...

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...