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Wage dynamics and promotions inside and between firms

  • Bas Klaauw

    ()

  • António Dias da Silva

This discussion paper resulted in a publication in the 'Journal of Population Economics' , 2011, 24, 1513-1548. We focus on the dynamic relation between wage increases, promotions and job changes. We relate our empirical analyses to the theoretical model of Gibbons and Waldman (1999). In the empirical analyses we use the Portuguese matched employer-employee data Quadros de Pessoal. We conclude from finding significant serial correlation in wage increases and promotion rates that employer learning about the worker's ability might be important. Furthermore, we find that the Portuguese labor market is not competitive. Finally, we argue that employer-reported promotion relate to a large extent to wage increases rather than changes in job tasks and complexity.

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Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 24 (2011)
Issue (Month): 4 (October)
Pages: 1513-1548

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Handle: RePEc:spr:jopoec:v:24:y:2011:i:4:p:1513-1548
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