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We introduce two models: a static model that allows for nonlinear interactions between workers and firms, and a dynamic model that allows, in addition, for Markovian earnings dynamics and endogenous mobility. We show that this framework nests a number of structural models of wages and worker mobility. We establish identification in short panels, and develop tractable two\u2010step estimators where firms are classified in a first step. Applying our method to Swedish administrative data, we find that log\u2010earnings are approximately additive in worker and firm heterogeneity. Our estimates imply the presence of strong sorting patterns between workers and firms, and a small contribution of firms\u2014net of worker composition\u2014to earnings dispersion. In addition, we document that wages have a direct effect on mobility, and that, beyond their dependence on the current firm, earnings after a job move also depend on the previous employer.<\/jats:p>","DOI":"10.3982\/ecta15722","type":"journal-article","created":{"date-parts":[[2019,5,20]],"date-time":"2019-05-20T03:11:18Z","timestamp":1558321878000},"page":"699-739","source":"Crossref","is-referenced-by-count":223,"title":["A Distributional Framework for Matched Employer Employee Data"],"prefix":"10.3982","volume":"87","author":[{"given":"St\u00e9phane","family":"Bonhomme","sequence":"first","affiliation":[{"name":"Department of Economics, University of Chicago"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Thibaut","family":"Lamadon","sequence":"additional","affiliation":[{"name":"Department of Economics, University of Chicago"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Elena","family":"Manresa","sequence":"additional","affiliation":[{"name":"Department of Economics, New York University"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"2359","published-online":{"date-parts":[[2019]]},"reference":[{"key":"ecta200022-bib-0001","unstructured":"Abowd, J. 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