TY  - JOUR
AU  - Abowd,John M.
AU  - Kramarz,Francis
TI  - Internal and External Labor Markets: An Analysis of Matched Longitudinal Employer-Employee Data
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6109
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w6109
L1  - http://www.nber.org/papers/w6109.pdf
N1  - Author contact info:
John M. Abowd
School of Industrial and Labor Relations
261 Ives Hall
Cornell University
Ithaca, NY 14853
Tel: 607/255-8024
Fax: 866/873-9078
E-Mail: John.Abowd@cornell.edu

Francis Kramarz
CREST-INSEE
15 blvd Gabriel Peri
Malakoff CEDEX, 92245
FRANCE
E-Mail: kramarz@ensae.fr
M1  - published as John M. Abowd, Francis Kramarz. "Internal and External Labor Markets: An Analysis of Matched Longitudinal Employer-Employee Data," in John Haltiwanger, Marilyn E. Manser and Robert Topel, editors, "Labor Statistics Measurement Issues" University of Chicago Press (1998)

AB  - 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.
ER  -