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Wage Dynamics and Promotions inside and between Firms

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  • Antonio Dias da Silva

    ()
    (Vrije Universiteit Amsterdam)

  • Bas van der Klaauw

    ()
    (Vrije Universiteit Amsterdam)

Abstract

We focus on the dynamic relation between wage increases, promotions and job changes. We relate our empirical analyses to the theoretical model of Gibbons and Waldman (1999). In the empirical analyses we use the Portuguese matched employer-employee data Quadros de Pessoal. We conclude from finding significant serial correlation in wage increases and promotion rates that employer learning about the worker's ability might be important. Furthermore, we find that the Portuguese labor market is not competitive. Finally, we argue that employer-reported promotion relate to a large extent to wage increases rather than changes in job tasks and complexity.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-084/3.

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Date of creation: 02 Oct 2006
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Handle: RePEc:dgr:uvatin:20060084

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Keywords: learning; competition; dynamic panel data models; matched employer-employee data;

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Citations

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Cited by:
  1. Waldman, Michael, 2007. "Theory and evidence in internal labor markets," MPRA Paper 5113, University Library of Munich, Germany.
  2. Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "What Do We Work For? An Anatomy of Pre- and Post-Tax Earnings Growth," IZA Discussion Papers 5298, Institute for the Study of Labor (IZA).
  3. Machado, C. Sofia & Portela, Miguel, 2013. "Age and Opportunities for Promotion," IZA Discussion Papers 7784, Institute for the Study of Labor (IZA).
  4. Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "Within- and Cross-Firm Mobility and Earnings Growth," IZA Discussion Papers 5163, Institute for the Study of Labor (IZA).
  5. Kauhanen, Antti & Napari, Sami, 2011. "Career and Wage Dynamics: Evidence from Linked Employer-Employee Data," Discussion Papers, The Research Institute of the Finnish Economy 1244, The Research Institute of the Finnish Economy.
  6. Kazuaki Okamura, 2011. "The Signalling Role of Promotion in Japan," Discussion Papers 1112, Graduate School of Economics, Kobe University.

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