Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315171 
Year of Publication: 
2025
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2025-020/V
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We study labor market dynamics of workers in a highly competitive industry, focusing on the relationship between workers' age, wages, and productivity. Our analysis uncovers an inverse U-shaped relationship. While some wage adjustments occur within the current firm, job mobility plays a crucial role in shaping wage trajectories. There is assortative matching with highly productive workers moving to highly productive firms, while less productive workers gravitate towards less productive firms. Our findings suggest that both in-firm wage progression and wage growth via job mobility contribute to a close alignment between wages and productivity throughout workers' careers.
Subjects: 
Age-wage profile
productivity
job mobility
JEL: 
J31
J62
Z22
Document Type: 
Working Paper

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