Endogenous Mobility
نویسندگان
چکیده
We correct for endogeneity bias in fixed-effects estimates of workerand firmspecific earnings heterogeneity using longitudinal linked employer-employee data. Realized job assignments may be determined by unobservable components of earnings. We exploit the relational structure of the data to model the evolution of the matched data as an evolving bipartite graph in a Bayesian latent class framework. We estimate the model using data from the LEHD infrastructure file system of the U.S. Census Bureau. Our results suggest that the correction for endogeneity is meaningful but does not overturn the qualitative findings from previous analyses that assumed mobility to be exogenous. JEL Codes: J64, J30, C11
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