Jochmans, KoenIdRefORCIDORCID: https://orcid.org/0000-0002-3090-3003 (2025) Identification in Models for Matched Panel Data with Two-Sided Random Effects. TSE Working Paper, n. 25-1649, Toulouse

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Abstract

This paper is concerned with models for matched worker-firm data in the presence of both worker and firm heterogeneity. We show that models with complementarity and sorting can be nonparametrically identified from short panel data while treating both worker and firm heterogeneity as discrete random effects. This paradigm is different from the framework of Bonhomme, Lamadon and Manresa (2019), where identification results are derived under the assumption that worker effects are random but firm heterogeneity is observed. The latter assumption requires the ability to consistently assign firms to latent clusters, which may be challenging; at a minimum, it demands minimal firm size to grow without bound. Our setup is compatible with
many theoretical specifications and our approach is constructive. Our identification
results appear to be the first of its kind in the context of matched panel data problems.

Item Type: Monograph (Working Paper)
Language: English
Date: June 2025
Place of Publication: Toulouse
Uncontrolled Keywords: bipartite graph, complementarity, heterogeneity, panel data, sorting
JEL Classification: C23 - Models with Panel Data
J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J62 - Job, Occupational, and Intergenerational Mobility
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Ecole doctorale: Toulouse School of Economics (Toulouse)
Site: UT1
Date Deposited: 27 Jun 2025 06:45
Last Modified: 06 Feb 2026 12:45
OAI Identifier: oai:tse-fr.eu:130607
URI: https://publications.ut-capitole.fr/id/eprint/50954
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