NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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How Much Should we Trust Estimates of Firm Effects and Worker Sorting?

Stéphane Bonhomme, Kerstin Holzheu, Thibaut Lamadon, Elena Manresa, Magne Mogstad, Bradley Setzler

NBER Working Paper No. 27368
Issued in June 2020, Revised in August 2020

---- Acknowledgments ----

We thank audiences at various conferences and seminars for useful comments. The opinions expressed in this paper are those of the authors alone and do not reflect the views of the Internal Revenue Service, the US Treasury Department, or the National Bureau of Economic Research. We thank SOI, Statistics Norway, the IFAU and Statistics Sweden, the Fondazione Rodolfo De Benedetti, as well as the Austrian Labor Market Service and the Austrian Federal Ministry for Social Affairs, Health, Care and Consumer Protection for granting access to all data sources. This work is a component of a larger project on income risk in the United States, conducted through the SOI Joint Statistical Research Program. Mogstad and Setzler acknowledge funding from NSF Grant SES-1851808. Bonhomme, Lamadon and Manresa acknowledge funding from NSF Grant SES-1658920.

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