Wage Dynamics and Promotions Inside and Between Firms

António Dias da Silva () and Bas van der Klaauw
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António Dias da Silva: European Central Bank

No 2351, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We focus on the dynamic relation between wage increases, promotions and job changes. We relate our empirical analyses to the theoretical model of Gibbons and Waldman (1999). In the empirical analyses we use the Portuguese matched employer-employee data Quadros de Pessoal. We conclude from finding significant serial correlation in wage increases and promotion rates that employer learning about the worker's ability might be important. Furthermore, we find that the Portuguese labor market is not competitive. Finally, we argue that employer-reported promotion relate to a large extent to wage increases rather than changes in job tasks and complexity.

Keywords: competition; learning; matched employer-employee data; dynamic panel data models (search for similar items in EconPapers)
JEL-codes: J6 L2 M5 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2006-10
New Economics Papers: this item is included in nep-bec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Journal of Population Economics, 2011, 24 (4), 1513-1548

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Related works:
Journal Article: Wage dynamics and promotions inside and between firms (2011)
Working Paper: Wage Dynamics and Promotions inside and between Firms (2006)
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