While hedonic models have been used for decades to analyse labour markets, one aspect of the labour market has been neglected. Most firms hire multiple workers. Classical hedonic models assume each firm hires only one worker. Analysing empirical models that allow firms to hire multiple workers is technically difficult. We are developing techniques to solve these technical difficulties and are using these techniques to analyse the Danish Integrated Database for Labour Market Research and the British Household Panel Survey. The techniques we are developing and these data sources will allow us to develop a more complete understanding of wage formation in the labour market than has been possible in the past. The Danish data is far more comprehensive than the British data and will allow us to test more aspects of the theory. The British data will allow us to apply our analysis to the UK economy and will allow us to compare what can be learned from a more limited data source with what can be learned from one of the most comprehensive existing labour market data sources.