Careers and Wage Growth within Large Firms

Abstract

The relationship between the worker’s career path and wage growth is studied using a longitudinal sample of large firms. The econometric analysis shows that promoted workers receive a positive wage premium even if they stay in the same job level. Demotions are associated with negative wage premiums. The wage-career dynamics generates a U-shape to the wage premiums for promotions over the hierarchical ladder. In the context of the model discussed, this shape suggests a stronger learning and/or human capital accumulation effect at the bottom of the hierarchy and a stronger job assignment

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Cite this paper

@inproceedings{Lima2002CareersAW, title={Careers and Wage Growth within Large Firms}, author={Francisco Lima and Pedro Telhado Pereira}, year={2002} }