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Mikkel, Solvsten ; Raffaele, Saggio ; Raffaele, Saggio ; Patrick, Kline ; Mikkel, Sølvsten. (2019) Leave-out estimation of variance components.
In: Papers. RePEc:arx:papers:1806.01494.

Full description at Econpapers

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To construct the person-year panel used in our analysis, we follow closely the sample selection procedures described in Card, Heining, and Kline (2013). First, we drop employment spells in which the worker’s age lies outside the range 20-60. The average worker in this sample has 1.21 jobs per year. To generate unique worker-firm assignments in each year, we restrict attention to spells associated with “dominant jobs” where the worker earned the most in each corresponding year. From this person-year file, we then exclude workers that (i) report a daily wage less than 5 real euros or have zero days worked (1.5% of remaining person-year observations) (ii) report a log daily wage change one year to the next that is greater than 1 in absolute value (6%) (iii) are employed in the public sector (10%) or (iv) have more than 10 jobs in any year or that have gender missing (0.1%).

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