Generalized AKM: Flexible Controls and Interactions in Wage Decompositions
广义 AKM:工资分解中的灵活控制与交互作用
How much wage dispersion is attributed to workers, firms, and their sorting depends on how wages are adjusted for observed characteristics. Standard AKM decompositions impose a known linear adjustment. We develop Generalized AKM, a framework that permits an unknown smooth covariate function and group-specific nonlinear interactions while preserving the original variance components. We prove consistency and asymptotic normality with heteroskedastic errors and many fixed…