@techreport{NBERw6109,
 title = "Internal and External Labor Markets: An Analysis of Matched Longitudinal Employer-Employee Data",
 author = "John M. Abowd and Francis Kramarz",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "6109",
 year = "1997",
 month = "July",
 URL = "http://www.nber.org/papers/w6109",
 abstract = {We decompose the real annual full time compensation costs of 1.1 million French workers followed over 12 years into a part that reflects their external opportunity wage and a part that reflects their internal wage rate.  Using these components of compensation we investigate the extent to which firm-size wage differentials and inter-industry wage differentials are due to variability in the external wage (person effects) versus variability in the internal wage (firm effects).  For France, we find that most of the firm-size wage effect and most of the inter-industry wage effect is due to person effects differences in the external wage rates.},
}