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Career and Wage Dynamics: Evidence from Linked Employer-Employee Data

Antti Kauhanen () and Sami Napari

A chapter in Research in Labor Economics, 2012, vol. 36, pp 35-76 from Emerald Publishing Ltd

Abstract: We study career and wage dynamics within and between firms using a large linked employer-employee panel dataset spanning 26 years. We construct six-level hierarchies for more than 5,000 firms. We replicate most of the analyses from Baker, Gibbs, and Holmström (1994) and make some extensions. Many of our results corroborate their findings. Careers within firms are important, but the strong version of the theory of internal labor markets does not fit the data. Recent theories of career and wage dynamics explain our findings well.

Keywords: Internal labor markets; employer changes; promotions; wage growth; human capital (search for similar items in EconPapers)
Date: 2012
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