Silva, A. and van der Klaauw, B. (2011). Wage dynamics and promotions inside and between firms Journal of Population Economics, 24(4):1513--1548.
-
Affiliated author
-
Publication year2011
-
JournalJournal of Population Economics
We focus on the dynamic relation between wage increases, promotions and job changes. In the empirical analyses, we use the Portuguese-matched employer-employee data Quadros de Pessoal. We find substantial wage returns to both promotions and job-to-job transitions. Our results are not consistent with models of full information and symmetric learning in a competitive and frictionless market. This might suggest that there is asymmetric information. An alternative explanation is that workers might search for a good match. Finally, we show that employer-reported promotions differ to a large extent from changes in hierarchical levels. {\textcopyright} 2010 The Author(s).