A Users' Guide to Uncovering Worker and Firm Effects: The ABC of AKM

Fuente: arXiv
Guardado en:
Detalles Bibliográficos
Autores principales: Bonhomme, Stephane, Manresa, Elena, Lamadon, Thibaut
Formato: Preprint
Publicado: 2026
Materias:
Acceso en línea:
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1866914461775822848
author Bonhomme, Stephane
Manresa, Elena
Lamadon, Thibaut
author_facet Bonhomme, Stephane
Manresa, Elena
Lamadon, Thibaut
contents The AKM model introduced by Abowd, Kramarz and Margolis (1999) has become a workhorse to study worker and firm heterogeneity, and to understand the sources of wage dispersion in the labor market using linked employer-employee data. In this article, we introduce the model and estimator, discuss some best practices for estimation, and review some empirical findings on the role of worker and firm heterogeneity in wage dispersion. While the AKM methodology has proven useful to analyze a host of questions in a variety of settings within labor economics and beyond, we also point to the need for methodological developments.
format Preprint
id arxiv_https___arxiv_org_abs_2603_17034
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle A Users' Guide to Uncovering Worker and Firm Effects: The ABC of AKM
Bonhomme, Stephane
Manresa, Elena
Lamadon, Thibaut
General Economics
Economics
The AKM model introduced by Abowd, Kramarz and Margolis (1999) has become a workhorse to study worker and firm heterogeneity, and to understand the sources of wage dispersion in the labor market using linked employer-employee data. In this article, we introduce the model and estimator, discuss some best practices for estimation, and review some empirical findings on the role of worker and firm heterogeneity in wage dispersion. While the AKM methodology has proven useful to analyze a host of questions in a variety of settings within labor economics and beyond, we also point to the need for methodological developments.
title A Users' Guide to Uncovering Worker and Firm Effects: The ABC of AKM
topic General Economics
Economics
url https://arxiv.org/abs/2603.17034