Abstract

References (29)

Beta

Citations (4)

Beta

One-Click Download | Share | Email | Add to Briefcase

Careers and Wage Growth within Large Firms

Francisco Lima
Instituto Superior Técnico (IST) - Department of Engineering and Management; CEG-IST

Pedro Telhado Pereira
Universidade da Madeira - Gestao e Economica; Institute for the Study of Labor (IZA)

July 2001

IZA Discussion Paper No. 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.

Keywords: Careers, Promotions, Wage Growth

JEL Classifications: J32, J33, M12

Working Paper Series

Date posted: August 20, 2001 ; Last revised: October 24, 2004

Suggested Citation

Lima, Francisco and Pereira, Pedro Telhado, Careers and Wage Growth within Large Firms (July 2001). IZA Discussion Paper No. 336. Available at SSRN: http://ssrn.com/abstract=278528

Export to: Export Citation What's this?

Contact Information

Francisco Lima (Contact Author) Instituto Superior Técnico (IST) - Department of Engineering and Management ( email ) Campus do Taguspark, Av. Prof. Cavaco Silva 2780-990 Porto Salvo Portugal HOME PAGE: http://web.tagus.ist.utl.pt/~francisco.lima/
CEG-IST ( email ) Lisbon Portugal
Pedro Telhado Pereira Universidade da Madeira - Gestao e Economica ( email ) Campus Universitario da Penteada 9000-390 Funchal Portugal 351 291 70 50 40 (Phone) 351 291 70 50 43 (Fax) HOME PAGE: http://www.uma.pt/Privado/ppereira
Institute for the Study of Labor (IZA) P.O. Box 7240 D-53072 Bonn Germany