Promotions and Wage Growth

Kristin McCue

Journal of Labor Economics, 1996, vol. 14, issue 2, 175-209

Abstract: This article presents evidence that internal mobility, defined as a promotion or other position change, is an important source of wage growth. It accounts for approximately 15 percent of wage growth over the life cycle for white and black men but less for women. The incidence of promotions and other position changes appears tied to the wage level: better paid workers are more likely to be promoted. The life-cycle incidence of internal mobility looks similar to that for conventionally defined job mobility. Most moves are made early in the career; mobility declines both with time in position and with experience. Copyright 1996 by University of Chicago Press.

Date: 1996
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