Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21194
Authors: 
Lima, Francisco
Pereira, Pedro Telhado
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion paper series 336
Abstract: 
The relationship between the worker?s career path and wage growth is studied using a longitudinal sample of large firms. The econometric analysis shows that promoted workers receive a positive wage premium even if they stay in the same job level. Demotions are associated with negative wage premiums. The wage-career dynamics generates a U-shape to the wage premiums for promotions over the hierarchical ladder. In the context of the model discussed, this shape suggests a stronger learning and/or human capital accumulation effect at the bottom of the hierarchy and a stronger job assignment effect at the top.
Subjects: 
Careers
promotions
wage growth
JEL: 
J33
M12
J32
Document Type: 
Working Paper

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