Cohort Effects in Promotions and Wages: Evidence from Sweden and the US

68 Pages Posted: 15 Jun 2011

See all articles by Illoong Kwon

Illoong Kwon

Seoul National University

Eva M. Meyersson Milgrom

Stanford Institute for Economic Policy Research (SIEPR); Stanford University - Department of Sociology

Seiwoon Hwang

affiliation not provided to SSRN

Date Written: 2011

Abstract

This paper studies the long-term effects of the business cycle on workers’ future promotions and wages. Using the Swedish employer-employee matched data, we find that a cohort of workers entering the labor market during a boom gets promoted faster and reaches higher ranks. This pro-cyclical promotion cohort effect persists even after controlling for workers’ initial jobs, and explains at least half of the wage cohort effects that previous studies have focused on. We repeat the same analyses using personnel records from a single US company, and obtain the same qualitative results.

Suggested Citation

Kwon, Illoong and Meyersson Milgrom, Eva and Hwang, Seiwoon, Cohort Effects in Promotions and Wages: Evidence from Sweden and the US (2011). Journal of Human Resources, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1864845

Illoong Kwon (Contact Author)

Seoul National University ( email )

Graduate School of Public Administration
599 Gwanak-ro
Gwanak-gu, Seoul 151-742
Korea, Republic of (South Korea)
82-2-880-8551 (Phone)
82-2-877-2411 (Fax)

HOME PAGE: http://www.albany.edu/~ik325357/

Eva Meyersson Milgrom

Stanford Institute for Economic Policy Research (SIEPR) ( email )

579 Serra Mall at Galvez St.
Stanford, CA 94305-6015
United States

Stanford University - Department of Sociology ( email )

Stanford, CA 94305
United States

Seiwoon Hwang

affiliation not provided to SSRN ( email )

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