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Who Gets Their First Job at a Large Firm? The Distinct Roles of Education and Skills

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  • Jaime Arellano-Bover

Abstract

Young workers' early years in the labor market are a key and formative time. Using data from 31 countries, this article documents the selection of labor market entrants into large firms, which existing literature associates with propitious environments for young workers. The young and inexperienced are underrepresented at large firms compared to experienced and older workers. Entrants who do get their first job at large firms are positively selected in terms of education and cognitive skills. The patterns of large-firm selection (i.e., importance of education vs. skills) somewhat differ between Europe, East and Southeast Asia, and North America.

Suggested Citation

  • Jaime Arellano-Bover, 2021. "Who Gets Their First Job at a Large Firm? The Distinct Roles of Education and Skills," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 465-469, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:465-69
    DOI: 10.1257/pandp.20211009
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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