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Title:Careers and Wage Growth within Large Firms PDF Logo
Authors:Lima, Francisco
Pereira, Pedro Telhado
Issue Date: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
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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