Firm-Wide Versus Establishment-Specific Labor-Market Practices

Posted: 25 Jan 2005

See all articles by David S. Kaplan

David S. Kaplan

Instituto Tecnologico Autonomo de Mexico - Departamento de Economia and Centro de Investigacion Economica

Brooks Pierce

Bureau of Labor Statistics

Abstract

We construct a novel data set matching occupational data from separate establishments to the establishments' corporate parents in order to study labor market links across establishments within diverse firms. We find substantial wage components common to all establishments within firms, even after netting out industry and occupation effects. However, employment changes are localized to establishments. The data suggest that internal labor markets of multi-establishment firms are linked throughout their entire organizations, but that establishment-level demand shocks do not permeate throughout the firm.

JEL Classification: D23, J33, J41

Suggested Citation

Kaplan, David S. and Pierce, Brooks, Firm-Wide Versus Establishment-Specific Labor-Market Practices. Review of Economics and Statistics, 2004, Available at SSRN: https://ssrn.com/abstract=653821

David S. Kaplan

Instituto Tecnologico Autonomo de Mexico - Departamento de Economia and Centro de Investigacion Economica ( email )

Av. Camino a Santa Teresa #930
Col. Heroes de Padierna
Mexico City, D.F. 10370
Mexico

Brooks Pierce (Contact Author)

Bureau of Labor Statistics ( email )

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