In 1999, John Abowd, Francis Kramarz, and David Margolis published "High Wage Workers and High Wage Firms." Their model and econometric techniques were pioneering in the analysis of labor markets, and many other markets with high-dimensional interactions between two sides. The conference will celebrate the continuing influence of the AKM (1999) model and its foundational role in the analysis of labor markets using linked employer-employee data. The goal of the conference is to highlight the range of new questions for which the AKM decomposition provides an effective way to understand data. The conference will also focus attention on key econometric and modeling issues that are common to applications of AKM. The program is posted at

Recent Submissions

  • Do firm effects drift? 

    Lachowska, Marta; Mas, Alexandre; Saggio, Raffaele; Woodbury, Stephen A. (Presented at the Models of Linked Employer-Employee Data Conference 2019, 2019-10-13)
    Firm effects in the AKM model are typically assumed to be constant over time. But what if they aren't constant? We look at a Time-Varying AKM model to show that firm effects are highly persistent and that variance components ...
  • It Ain’t Where You’re From, It’s Where You’re At.. 

    Kline, Patrick; Saggio, Raffaele; Sølvsten, Mikkel (Presented at the Models of Linked Employer-Employee Data Conference 2019, 2019-10-12)
    The AKM model of wage determination was loosely motivated by wage posting models (e.g., Burdett and Mortensen, 1998) that feature a stable wage ladder. Using the AKM model, we looked at gender differences in sorting. ...
  • Social Connections and the Sorting of Workers to Firms 

    Eliason, Marcus; Hensvik, Lena; Kramarz, Francis; Norström Skans, Oskar (Presented at the Models of Linked Employer-Employee Data Conference 2019, 2019-10-13)
    We assess the impact of social connections on the sorting of workers to firms (and the presumption that connections increase sorting inequality) by first examining the distribution of displaced workers’ social connections ...
  • Firm Pay Dynamics 

    Engbom, Niklas; Moser, Christian (2019-10-13)
    We investigate firm pay in cross-section and over time by combining linked employer-employee data from Sweden, register data on individual characteristics for all workers, and income statement and balance sheet data for ...


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