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Occupational Job Ladders within and between Firms

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  • Forsythe, Eliza

    (University of Illinois at Urbana-Champaign)

Abstract

I present four facts about occupational mobility: (1) most movements occur within firms, (2) downward moves are frequent, (3) wage growth reflects the direction and distance of mobility, and (4) relative occupational wages before mobility predict the direction of mobility, except for non-displaced movers between firms. I show these facts are consistent with models of vertical sorting. I show that non-displaced movements between firms obscure the positive selection of upward occupational movers, likely reflecting moves up a firm-wage job ladder. Displaced workers show similar predisplacement selection to internal movers, with pre-displacement occupational wage rank predicting the direction of occupational mobility.

Suggested Citation

  • Forsythe, Eliza, 2023. "Occupational Job Ladders within and between Firms," IZA Discussion Papers 16682, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16682
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    References listed on IDEAS

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    Cited by:

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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