Careers in Firm and Occupational Labor Markets

Abstract

Abstract Using matched worker-firm personnel data the Swedish private sector (except for banking and insurance) from 1970-1990, we analyze the mobility pattern and wage effects of three types of career moves: changes in occupation, firm, and hierarchical level (the latter for moves both within and between firms). Workers change occupations less than they change firms, suggesting attachment to “occupational labor markets” is as important as attachment to internal labor markets. Career job search has a two-stage pattern: occupational changes tend to occur before firm changes. All three career moves have large effects on wage growth; promotions have the largest effect. The wage effects of simultaneous changes (e.g., firm and occupation together) are larger than the sum of individual effects. Larger firms operate more effective internal labor markets, providing better opportunities for occupational and hierarchical level change. There is evidence of fast tracking in both promotions and exits. We find little effect of gender on any of these phenomena.

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Cite this paper

@inproceedings{Gibbs2003CareersIF, title={Careers in Firm and Occupational Labor Markets}, author={Michael J. Gibbs and Kathryn Ierulli}, year={2003} }