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Accumulating valuable work experience: the importance of large firms and big cities

Author

Listed:
  • Peters, Jan Cornelius

    (Thünen Institute)

  • Niebuhr, Annekatrin

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ, Kiel)

Abstract

"Using linked employer-employee data on labor market biographies of workers in Germany, this paper analyzes where valuable work experience is primarily acquired. It distinguishes between learning effects related to firm size and labor market size. We show that wages increase with the size of the cities and establishments in which experience was accumulated. Almost 40 percent of the dynamic benefits of working in large cities are in fact due to working in large firms. We provide evidence on two potential explanations for the role of size: formal training increases with firm size and the frequency of job changes with city size." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Peters, Jan Cornelius & Niebuhr, Annekatrin, 2023. "Accumulating valuable work experience: the importance of large firms and big cities," IAB-Discussion Paper 202304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:202304
    DOI: 10.48720/IAB.DP.2304
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    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Berufserfahrung ; Betriebsgröße ; Großunternehmen ; Integrierte Erwerbsbiografien ; Lohnentwicklung ; regionaler Arbeitsmarkt ; regionaler Vergleich ; qualifikationsspezifische Faktoren ; Stadtregion ; Weiterbildungsangebot ; Arbeitsplatzwechsel ; 2005-2011;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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