Job level changes and wage growth
Purpose – The purpose of this paper is to estimate the impact of job level changes on wages accounting for both the potential endogeneity of promotions and measurement error in job level changes. Design/methodology/approach – Instruments for job level changes the workers' use belief about the possibility of a promotion from the previous period. Reasons why the respondent believes that a promotion is not possible are used as a second set of instruments. Also, the paper estimates separate wage effects for men and women. Findings – The paper indicates that promotions carry a roughly 18 percent wage increase; compared to a 7 percent premium when using ordinary least squares estimation. The paper also finds that men receive much larger wage increases when promoted, compared with women. Originality/value – This is the first paper to account for the endogeneity of promotions in wage estimates. Accurately estimating the relationship between job level changes and wages helps people to understand wage growth over a worker's lifetime.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 30 (2009)
Issue (Month): 3 (July)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com |
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/ijm.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:ijmpps:v:30:y:2009:i:3:p:269-284. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.