Sample | Firm Size | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Baseline (1) | ME Corrected (2) | Uniformly Distributed Skills (3) | Men 30–45 (4) | + Women 30–35 (5) | + Public-Sector Firms (6) | - Low-Skilled Mena (7) | ≥50 Employees (8) | ≥100 Employees (9) | Plants (10) | |
Panel A: Cognitive Skill | ||||||||||
Between-firm variance | ||||||||||
1986 | 0.173 | 0.197 | 0.173 | 0.141 | 0.166 | 0.143 | 0.151 | 0.139 | 0.209 | |
1997 | 0.225 | 0.258 | 0.226 | 0.198 | 0.173 | 0.230 | 0.203 | 0.200 | 0.186 | 0.265 |
2008 | 0.229 | 0.264 | 0.232 | 0.228 | 0.178 | 0.233 | 0.206 | 0.191 | 0.172 | 0.264 |
Within-firm variance | ||||||||||
1986 | 0.840 | 0.817 | 0.836 | 0.863 | 0.848 | 0.747 | 0.875 | 0.890 | 0.811 | |
1997 | 0.747 | 0.714 | 0.758 | 0.781 | 0.799 | 0.751 | 0.697 | 0.787 | 0.803 | 0.722 |
2008 | 0.721 | 0.686 | 0.734 | 0.734 | 0.773 | 0.722 | 0.690 | 0.755 | 0.768 | 0.693 |
Panel B: Noncognitive Skill | ||||||||||
Between-firm variance | ||||||||||
1986 | 0.081 | 0.111 | 0.079 | 0.072 | 0.076 | 0.070 | 0.061 | 0.055 | 0.099 | |
1997 | 0.109 | 0.156 | 0.114 | 0.097 | 0.094 | 0.111 | 0.096 | 0.088 | 0.080 | 0.135 |
2008 | 0.110 | 0.156 | 0.113 | 0.108 | 0.092 | 0.112 | 0.091 | 0.088 | 0.081 | 0.130 |
Within-firm variance | ||||||||||
1986 | 0.872 | 0.841 | 0.887 | 0.894 | 0.879 | 0.829 | 0.889 | 0.895 | 0.849 | |
1997 | 0.786 | 0.739 | 0.822 | 0.806 | 0.828 | 0.790 | 0.744 | 0.803 | 0.805 | 0.763 |
2008 | 0.801 | 0.755 | 0.825 | 0.794 | 0.842 | 0.801 | 0.762 | 0.814 | 0.816 | 0.782 |
Notes: The table shows the variance decompositions outlined in Section III of the paper. See Online Appendix Table C1 for the results from simulated variance components under random allocation of workers to firms (for the baseline case).
↵a. The share of the sample with low education falls dramatically over time. The cutoff, ten years or fewer of education, implies that 35 percent are dropped in 1986, compared to 14 percent in 1997 and 8 percent in 2008. This is due to the rapid expansion of upper-secondary education.