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Promotions and Wage Growth

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  • McCue, Kristin

Abstract

This article presents evidence that internal mobility, defined as a promotion or other position change, is an important source of wage growth. It accounts for approximately 15 percent of wage growth over the life cycle for white and black men but less for women. The incidence of promotions and other position changes appears tied to the wage level: better paid workers are more likely to be promoted. The life-cycle incidence of internal mobility looks similar to that for conventionally defined job mobility. Most moves are made early in the career; mobility declines both with time in position and with experience. Copyright 1996 by University of Chicago Press.

Suggested Citation

  • McCue, Kristin, 1996. "Promotions and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 175-209, April.
  • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:2:p:175-209
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    References listed on IDEAS

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    1. Charles Brown & Curtis Gilroy & Andrew Kohen, 1982. "The Effect of the Minimum Wage on Employment and Unemployment: A Survey," NBER Working Papers 0846, National Bureau of Economic Research, Inc.
    2. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    3. Albrecht, James W & Axell, Bo, 1984. "An Equilibrium Model of Search Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 824-840, October.
    4. Lawrence F. Katz & Alan B. Krueger, 1992. "The Effect of the Minimum Wage on the Fast-Food Industry," ILR Review, Cornell University, ILR School, vol. 46(1), pages 6-21, October.
    5. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
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