Large firms and within firm occupational reallocation
Journal of Economic Theory, 2018, vol. 174, issue C, 184-223
This paper considers the equilibrium interaction between within firm and across firm reallocation in the presence of labor market frictions. While a sizable literature has investigated frictional labor markets, it has ignored within firm mobility. Nonetheless, every year a sizable fraction of workers switch occupations without changing firms. Employees in large firms can sample from a larger selection and across firm mobility is replaced by within firm mobility. Bringing together within and across firm reallocation along with labor market frictions, naturally accounts for the observed differences in worker flows and wages across firms of different sizes.
Keywords: Frictional labor markets; Occupational mobility; Within firm occupational reallocation; Firm size–wage premium; Separation rates (search for similar items in EconPapers)
JEL-codes: E24 J24 J31 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:174:y:2018:i:c:p:184-223
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