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Large firms and within firm occupational reallocation

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  • Papageorgiou, Theodore

Abstract

This paper considers the equilibrium interaction between within firm and across firm reallocation in the presence of labor market frictions. While a sizable literature has investigated frictional labor markets, it has ignored within firm mobility. Nonetheless, every year a sizable fraction of workers switch occupations without changing firms. Employees in large firms can sample from a larger selection and across firm mobility is replaced by within firm mobility. Bringing together within and across firm reallocation along with labor market frictions, naturally accounts for the observed differences in worker flows and wages across firms of different sizes.

Suggested Citation

  • Papageorgiou, Theodore, 2018. "Large firms and within firm occupational reallocation," Journal of Economic Theory, Elsevier, vol. 174(C), pages 184-223.
    • Handle: RePEc:eee:jetheo:v:174:y:2018:i:c:p:184-223
    DOI: 10.1016/j.jet.2017.12.004
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    9. Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2020. "Occupational mobility and the returns to training," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 174-211, February.
    10. Cici, Gjergji & Hendriock, Mario & Kempf, Alexander, 2018. "The impact of labor mobility restrictions on managerial actions: Evidence from the mutual fund industry," CFR Working Papers 18-01, University of Cologne, Centre for Financial Research (CFR).
    11. Cici, Gjergji & Hendriock, Mario & Kempf, Alexander, 2022. "Finding your calling: Matching skills with jobs in the mutual fund industry," CFR Working Papers 19-05, University of Cologne, Centre for Financial Research (CFR), revised 2022.
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    More about this item

    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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