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Within- and Cross-Firm Mobility and Earnings Growth

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Author Info

  • Frederiksen, Anders

    ()
    (Aarhus University)

  • Halliday, Timothy J.

    ()
    (University of Hawaii at Manoa)

  • Koch, Alexander K.

    ()
    (Aarhus University)

Abstract

While it is well established that both promotions within firms and mobility across firms lead to significant earnings progression, little is known about the interaction between these types of mobility. Exploiting a large Danish panel data set and controlling for unobserved individual heterogeneity, we show that cross-firm moves at the non-executive level provide sizeable short-run gains (similar to the effect of a promotion), consistent with the existing literature. These gains, however, appear modest when compared with the persistent impact on earnings growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5163.

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Length: 38 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5163

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Keywords: earnings growth; promotions; dynamic panel data models; matched employer-employee data;

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References

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Cited by:
  1. 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).
  2. Frederiksen, Anders & Kato, Takao, 2011. "Human Capital and Career Success: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 5764, Institute for the Study of Labor (IZA).

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