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Cohort Effects in Promotions and Wages: Evidence from Sweden and the United States

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Author Info

  • Illoong Kwon
  • Eva Meyersson Milgrom
  • Seiwoon Hwang

Abstract

This paper studies the long-term effects of the business cycle on workers’ future promotions and wages. Using the Swedish employer-employee matched data, we find that a cohort of workers entering the labor market during a boom gets promoted faster and reaches higher ranks. This procyclical promotion cohort effect persists even after controlling for workers’ initial jobs, and explains at least half of the wage cohort effects that previous studies have focused on. We repeat the same analyses using personnel records from a single U.S. company, and obtain the same qualitative results.

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File URL: http://jhr.uwpress.org/cgi/reprint/45/3/772
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 45 (2010)
Issue (Month): 3 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:45:y:2010:iii:1:p772-808

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Taylor, Mark P., 2013. "The labour market impacts of leaving education when unemployment is high: evidence from Britain," ISER Working Paper Series 2013-12, Institute for Social and Economic Research.
  2. Maclean, Johanna Catherine, 2013. "The health effects of leaving school in a bad economy," Journal of Health Economics, Elsevier, vol. 32(5), pages 951-964.
  3. repec:eti:dpaper:13029 is not listed on IDEAS
  4. Giovanni Russo & Wolter Hassink, 2012. "Multiple Glass Ceilings," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(4), pages 892-915, October.
  5. Kässi, Otto, 2011. "Earnings Dynamics of Men and Women in Finland: Permanent Inequality versus Earnings Instability," MPRA Paper 34301, University Library of Munich, Germany.
  6. Beatrice Brunner & Andreas Kuhn, 2010. "The Impact of Labor Market Entry Condition on Initial Job Assignment, Human Capital Accumulation, and Wages," NRN working papers 2010-15, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  7. Russo, Giovanni & Hassink, Wolter, 2011. "Multiple Glass Ceilings," IZA Discussion Papers 5828, Institute for the Study of Labor (IZA).
  8. M. Gaini & A. Leduc & A. Vicard, 2012. "A scarred generation? French evidence on young people entering into a tough labour market," Documents de Travail de la DESE - Working Papers of the DESE g2012-05, Institut National de la Statistique et des Etudes Economiques, DESE.

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