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

Antti Kauhanen () and Sami Napari

No 1244, Discussion Papers from The Research Institute of the Finnish Economy

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 (Quarterly Journal of Economics, 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)
JEL-codes: J62 L22 M12 M51 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Chapter: Career and Wage Dynamics: Evidence from Linked Employer-Employee Data (2012)
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