Job Levels and Wages

82 Pages Posted: 31 May 2023

Abstract

Job levels summarize the complexity, autonomy, and responsibility of task execution. Conceptually, job levels are related to the organization of production, are distinct from occupations, and can be constructed from data on task execution. We highlight their empirical role in matched employer-employee data for life-cycle wage dynamics, refine a task-based view of wage determination, and demonstrate that differences in job levels account for most of the observed wage differences. We also show, within a structural framework, that a job-level perspective provides a novel and fruitful interpretation of widely studied phenomena such as the gender wage gap and the returns to education and seniority.

Keywords: job levels, wage structure, career ladder

JEL Classification: D33, E24, J31

Suggested Citation

Bayer, Christian and Kuhn, Moritz, Job Levels and Wages. IZA Discussion Paper No. 16177, Available at SSRN: https://ssrn.com/abstract=4464590 or http://dx.doi.org/10.2139/ssrn.4464590

Christian Bayer (Contact Author)

University of Bonn ( email )

Regina-Pacis-Weg 3
Postfach 2220
Bonn, D-53012
Germany

Moritz Kuhn

University of Bonn ( email )

Regina-Pacis-Weg 3
Postfach 2220
Bonn, D-53012
Germany

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