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Within- and Cross-Firm Mobility and Earnings Growth

Anders Frederiksen (), Timothy Halliday and Alexander Koch

No 5163, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: While it is well established that both promotions within firms and mobility across firms lead to significant earnings progression, little is known about the interaction between these types of mobility. Exploiting a large Danish panel data set and controlling for unobserved individual heterogeneity, we show that cross-firm moves at the non-executive level provide sizeable short-run gains (similar to the effect of a promotion), consistent with the existing literature. These gains, however, appear modest when compared with the persistent impact on earnings growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level.

Keywords: dynamic panel data models; promotions; earnings growth; matched employer-employee data (search for similar items in EconPapers)
JEL-codes: C33 J6 M51 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-09
New Economics Papers: this item is included in nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Industrial and Labor Relations Review, 2016, 69 (2), 320-353

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