This book consists of a selected subset of papers presented at the
International Symposium of Linked Employer-Employee Data, held in
Washington DC, in May 1998 - to address the creation and analysis
of such matched data in an environment that safeguards respondent
confidentiality. The conference brought together a wide range of
social scientists and statisticians from more than 20 countries.
Three broad themes are highlighted:
(1) The analysis of linked employer-employee data.
The basic finding of this and the next section is that the firm
matters a good deal in explaining the differences in earnings,
productivity, and work experiences of individual workers. Linked
data allow the researcher to disentangle the firm effects from the
worker effects.
(2) Econometric issues involved with the analysis of such
data.
Creating and analyzing employer-employee matched data sets presents
a number of new econometric problems that are not present in
standard micro-data sets containing just workers or just employers.
However, these data also offer us a unique opportunity to examine
the effects of some of the econometric problems involved in using
the other data sources. The chapters in this section address both
of these issues. The first two chapters examine new econometric
issues involved in the creation and use of matched data sets, while
the second two chapters use matched data to examine possible
problems with cross-sectional or panel data on workers. The results
from each of these chapters will be valuable to all empirical
researchers, regardless of whether they are using employer-employee
matched data or more standard cross-sectional or panel data
sets.
(3) Ongoing effortsaimed at creating large-scale linked
employer-employee data.
The last section of this book describes four recent efforts at
creating linked employer-employee data through surveys of firms and
individuals. The first two chapters describe an "employers first"
methodology of creating linked employer-employee data, and the last
two chapters describe an "employees first" methodology. The two
"employees first" surveys described here are, as far as known, the
only two large-scale surveys in production that follow this design.
Each of the four chapters in this section describes details about
the design and field operation of the survey that will be
indispensable to others who might want to create or analyze linked
employer-employee survey data.
The 23 chapters in this book provide a glimpse into the future of
labor economics and industrial organization. It can be said that
labor economics and public policy around the world has been
dominated over the past several decades by quantitative analyses
based upon public-use US micro-data. In the future, it is very
likely that economics and social policy in the United States and
elsewhere will depend on quantitative analysis based on linked
employer-employee micro-data currently residing in all continents
of the world.
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