Linked employer-employee data offer a wide range of possibilities for researchers. For example, this type of data is used to understand the role of worker and firm quality in the development of wage inequality, as for example in Card, Heining, Kline (2013). A widely used approach to identify worker and firm quality was developed by Abowd, Kramarz and Margolis (1999).
Since then, many researchers have used the AKM model to study worker and firm heterogeneity in wages, as well as the importance of labour market sorting. While the model continues to be heavily used until today, recent developments discuss potential biases and propose corrections (for example Abowd et al, 2004; Andrews et al, 2008, 2012; Kline, Saggio, Sølvsten 2020; Bonhomme et al, 2023). As with the first edition of the workshop that took place in 2023, the purpose of the second edition continues to be to bring together researchers working on or interested in topics related to worker and firm quality to discuss current work.