Methods for the analysis of linked employer-employee data are not yet available in standard econometrics packages. In this paper, we make the fixed-effects methods developed originally by Abowd, Kramarz, Margolis and others more accessible, where possible, and show how they can be implemented in...

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...