IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Wage Differences between Incumbents and External Candidates

  • W.H.J. Hassink
  • G. Russo
Registered author(s):

    This paper compares the hourly wage of employees who change jobs within their firm with that of workers who are hired from other employers in the external labor market. We use a Dutch data set of about 45 thousand workers who are employed at 1,838 firms over in the years 1997 and 1998. We have the following empirical results: Workers who moved internally are in the higher segments of the wage distribution, relative to externally-hired workers. The difference in wage narrows a bit when we relate the workers with internal mobility to the hirees who were previously employed with another firm (job-to-job movement). We find that the difference in wage between internal candidates and external candidates from other employers disappears if we correct for the workers’ observable characteristics. The empirical results indicate that on average there is no substantial wage difference between workers who make a transition between jobs within their firm and comparable workers who make a transition between firms in the external labor market.

    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.

    File URL: http://dspace.library.uu.nl/bitstream/handle/1874/7364/03-03.pdf
    Download Restriction: no

    Paper provided by Utrecht School of Economics in its series Working Papers with number 03-03.

    as
    in new window

    Length:
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:use:tkiwps:0303
    Contact details of provider: Postal: P.O. Box 80125, NL-3508 TC Utrecht
    Phone: +31 30 253 9800
    Fax: +31 30 253 7373
    Web page: http://www.uu.nl/EN/faculties/leg/organisation/schools/schoolofeconomicsuse/Pages/default.aspx
    Email:


    More information through EDIRC

    Order Information: Email:


    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
    2. Baker, George & Gibbs, Michael & Holmstrom, Bengt, 1994. "The Wage Policy of a Firm," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 921-55, November.
    3. Robert Gibbons & Michael Waldman, 1999. "A Theory Of Wage And Promotion Dynamics Inside Firms," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1321-1358, November.
    4. Edward P. Lazear, 1991. "Labor Economics and the Psychology of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 89-110, Spring.
    5. Greenwald, Bruce C, 1986. "Adverse Selection in the Labour Market," Review of Economic Studies, Wiley Blackwell, vol. 53(3), pages 325-47, July.
    6. Simon Burgess & Julia Lane & David Stevens, 1998. "Hiring Risky Workers: Some Evidence," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(4), pages 669-676, December.
    7. Hassink, Wolter H. J., 1996. "An empirical note on job turnover and internal mobility of workers," Economics Letters, Elsevier, vol. 51(3), pages 339-344, June.
    8. Treble, John & van Gameren, Edwin & Bridges, Sarah & Barmby, Tim, 2001. "The internal economics of the firm: further evidence from personnel data," Labour Economics, Elsevier, vol. 8(5), pages 531-552, December.
    9. Chan, William, 1996. "External Recruitment versus Internal Promotion," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 555-70, October.
    10. Edward P. Lazear, 1995. "Hiring Risky Workers," NBER Working Papers 5334, National Bureau of Economic Research, Inc.
    11. Baker, George & Gibbs, Michael & Holmstrom, Bengt, 1994. "The Internal Economics of the Firm: Evidence from Personnel Data," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 881-919, November.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:0303. 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: (Marina Muilwijk)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.