CREST-ENSAE Mini-course
Microeconometrics of Modeling
Labor Markets Using Linked
Employer-Employee Data
John M. Abowd
portions of today’s lecture are joint
work Kevin McKinney (U.S. Census
Bureau) and Ian Schmutte (University of
Georgia)
June 10, 2013
Topics
• May 30: Basics of analyzing complex linked
data
• June 3: Basics of graph theory with
applications to labor markets
• June 6: Matching and sorting models
• June 10: Endogenous mobility models
• Online course materials
6 June 2013
© John M. Abowd and others, 2013
2
Lecture 4
• The full specification of the dynamic bipartite
graph model for the labor market
• Testing for exogenous mobility
• Endogenous mobility models
6 June 2013
© John M. Abowd and others, 2013
3
THE FULL DYNAMIC BIPARTITE GRAPH
MODEL FOR THE LABOR MARKET
6 June 2013
© John M. Abowd and others, 2013
4
TESTING FOR EXOGENOUS
MOBILITY
6 June 2013
© John M. Abowd and others, 2013
5
MODELING ENDOGENOUS
MOBILITY
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© John M. Abowd and others, 2013
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Summary
• The dynamic bipartite graph model for the labor
market implies a full structure for the movements
between employers in the presence of individual,
employer and match heterogeneity with
endogenous movements between employers
• Tests can be developed based on different
implications of the exogenous mobility for the
dynamic graph
• Endogenous mobility with full heterogeneity can
be modeled and estimated using Bayesian
methods
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© John M. Abowd and others, 2013
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