Promotions, Job Seniority, and Product Demand Effects on Earnings

Ioannis Theodossiou

Oxford Economic Papers, 1996, vol. 48, issue 3, 456-72

Abstract: This paper investigates the relationship between promotion status, job tenure, product demand, and earnings utilizing a matched employer-employee sample which gives direct information on individuals' promotion prospects. Promotion status is modeled as an endogenous variable, subject to an initial job choice. Then the effect of job tenure and product demand on earnings level is investigated. It is found that the earnings of the individuals employed in jobs with promotion prospects are not only higher compared with the remainder but also unaffected by any decrease in product demand. Copyright 1996 by Royal Economic Society.

Date: 1996
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