Longitudinal Employer - Household Dynamics
Technical paper No. TP-2002-06
Computing Person and Firm Effects Using Linked Longitudinal
: April 2002
: John M. Abowd, Robert H. Creecy, and Francis Kramarz
: Ronald Prevost (Ronald.C.Prevost@census.gov)
U.S. Census Bureau, LEHD Program
4700 Silver Hill Rd.
Suitland, MD 20233 USA
This document reports the results of research and analysis undertaken by the U.S. Census Bureau staff. It has
undergone a Census Bureau review more limited in scope than that given to official Census Bureau publications,
and is released to inform interested parties of ongoing research and to encourage discussion of work in progress.
This research is a part of the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics Program (LEHD),
which is partially supported by the National Science Foundation Grant SES-9978093 to Cornell University (Cornell
Institute for Social and Economic Research), the National Institute on Aging, and the Alfred P. Sloan Foundation.
The views expressed herein are attributable only to the author(s) and do not represent the views of the U.S. Census
Bureau, its program sponsors or data providers. Some or all of the data used in this paper are confidential data from
the LEHD Program. The U.S. Census Bureau is preparing to support external researchers’ use of these data; please
contact Ronald Prevost (Ronald.C.Prevost@census.gov), U.S. Census Bureau, LEHD Project, FB 2138-3, 4700 Silver
Hill Rd., Suitland, MD 20233, USA.
Computing Person and Firm Effects
Using Linked Longitudinal Employer-Employee Data
John M. Abowd, Cornell University, United States Census Bureau, CREST, and NBER
Robert H. Creecy, United States Census Bureau
Francis Kramarz, CREST-INSEE, CEPR, IZA
The authors gratefully acknowledge the research assistance of Paul Lengermann. Charles E.
McCulloch provided valuable assistance in relating our research to the statistical breeding