Labor mobility network and intra firm wage dispersion
AbstractIn the recent discussion on productivity and how to foster it, the role of wage dispersion as determinant of workers productivity attracted much attention. But, what are the determinant of wage dispersion? In this paper, we analyze a very specific determinant of wage dispersion: job-to-job labor mobility. We focus on a geographically limited labor market and we represent the firms operating in such context as a “labor mobility network”. The latter can be formally defined as a binary directed graph where vertices indicate firms and links represent transfers of workers between firms. Some firms will be connected to each others, others will be disconnected. Since the firm’s position in the network (more or less central and close to other firms) is strictly connected with opportunities of knowledge transfers and good quality matches, its position could also be associated to intra-firm wage dispersion. Using 1990-2001 Veneto (a region of Italy) matched firm-worker data, we empirically test the existence of this association. We find the central positions in the network structure are positively associated with intra-firm wage dispersion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 133.
Date of creation: 2013
Date of revision:
wage dispersion; labor mobility; network;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-HME-2013-07-15 (Heterodox Microeconomics)
- NEP-LAB-2013-07-15 (Labour Economics)
- NEP-LMA-2013-07-15 (Labor Markets - Supply, Demand, & Wages)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
- Matthew Black, 1981. "An Empirical Test of the Theory of On-The-Job Search," Journal of Human Resources, University of Wisconsin Press, vol. 16(1), pages 129-140.
- Mortensen, Dale T., 1994. "The cyclical behavior of job and worker flows," Journal of Economic Dynamics and Control, Elsevier, vol. 18(6), pages 1121-1142, November.
- Ljubica Nedelkoska & Florian Noseleit, 2008. "Industry Dynamics and Highly Qualified Labor Mobility," Jena Economic Research Papers 2008-095, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- David M. Blau, 1992. "An empirical analysis of employed and unemployed job search behavior," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(4), pages 738-752, July.
- Hibbs Jr., Douglas A. & Locking, Håkan, 2000.
"Wage Dispersion and Productive Efficiency: Evidence For Sweden,"
Working Papers in Economics
21, University of Gothenburg, Department of Economics.
- Hibbs, Douglas A, Jr & Locking, Hakan, 2000. "Wage Dispersion and Productive Efficiency: Evidence for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 755-82, October.
- Butters, Gerard R, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Wiley Blackwell, vol. 44(3), pages 465-91, October.
- Rudolf Winter-Ebmer & Josef Zweimueller, .
"Intra-firm Wage Dispersion and Firm Performance,"
IEW - Working Papers
008, Institute for Empirical Research in Economics - University of Zurich.
- April Mitchell Franco & Darren Filson, 2000.
"Knowledge Diffusion through Employee Mobility,"
Claremont Colleges Working Papers
2000-61, Claremont Colleges.
- Burdett, Kenneth & Judd, Kenneth L, 1983. "Equilibrium Price Dispersion," Econometrica, Econometric Society, vol. 51(4), pages 955-69, July.
- Mortensen, D.T., 1998. "Equilibrium Unemployment with Wage Posting: Burdett-Mortensen Meet Pissarides," Papers 98-14, Centre for Labour Market and Social Research, Danmark-.
- Pissarides, Christopher A, 1994.
"Search Unemployment with On-the-Job Search,"
Review of Economic Studies,
Wiley Blackwell, vol. 61(3), pages 457-75, July.
- Milgrom, Paul R, 1988.
"Employment Contracts, Influence Activities, and Efficient Organization Design,"
Journal of Political Economy,
University of Chicago Press, vol. 96(1), pages 42-60, February.
- Paul R. Milgrom., 1987. "Employment Contracts, Influence Activities and Efficient Organization Design," Economics Working Papers 8741, University of California at Berkeley.
- Milgrom, Paul R., 1987. "employment contracts, influence activities and efficient organization design," Department of Economics, Working Paper Series qt6pf6c5j6, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
- Pissarides, Christopher A, 1985. "Short-run Equilibrium Dynamics of Unemployment Vacancies, and Real Wages," American Economic Review, American Economic Association, vol. 75(4), pages 676-90, September.
- Barlevy, Gadi, 2002.
"The Sullying Effect of Recessions,"
Review of Economic Studies,
Wiley Blackwell, vol. 69(1), pages 65-96, January.
- Pedro S. Martins, 2008.
"Dispersion in Wage Premiums and Firm Performance,"
8, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Kristen Keith & Abagail McWilliams, 1999. "The Returns to mobility and job search by gender," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(3), pages 460-477, April.
- Dale T. Mortensen, 2005. "Wage Dispersion: Why Are Similar Workers Paid Differently?," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633191, June.
- Parsons, Donald O, 1973. "Quit Rates Over Time: A Search and Information Approach," American Economic Review, American Economic Association, vol. 63(3), pages 390-401, June.
- Akerlof, George A & Yellen, Janet L, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 255-83, May.
- Postel-Vinay, F. & Robin, J.-M., 2002.
"Equilibrium wage dispersion with worker and employer heterogeneity,"
Open Access publications from University College London
http://discovery.ucl.ac.u, University College London.
- Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
- Postel-Vinay, Fabien & Robin, Jean-Marc, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," CEPR Discussion Papers 3548, C.E.P.R. Discussion Papers.
- Bontemps, C. & Robin, J.M. & van den Berg, G.J., 1998.
"Equilibrium Search with Continuous Productivity Dispersion: Theory and Non-Parametric Estimation,"
98-07, Centre for Labour Market and Social Research, Danmark-.
- Bontemps, Christian & Robin, Jean-Marc & van den Berg, Gerard J, 2000. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 305-58, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).
If references are entirely missing, you can add them using this form.