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Job Levels and Wages

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  • Bayer, Christian

    (University of Bonn)

  • Kuhn, Moritz

    (University of Bonn)

Abstract

Job levels summarize the complexity, autonomy, and responsibility of task execution. Conceptually, job levels are related to the organization of production, are distinct from occupations, and can be constructed from data on task execution. We highlight their empirical role in matched employer-employee data for life-cycle wage dynamics, refine a task-based view of wage determination, and demonstrate that differences in job levels account for most of the observed wage differences. We also show, within a structural framework, that a job-level perspective provides a novel and fruitful interpretation of widely studied phenomena such as the gender wage gap and the returns to education and seniority.

Suggested Citation

  • Bayer, Christian & Kuhn, Moritz, 2023. "Job Levels and Wages," IZA Discussion Papers 16177, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16177
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    More about this item

    Keywords

    job levels; wage structure; career ladder;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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