Wage Dynamics and Promotions inside and between Firms

Antonio Dias da Silva, Bas van der Klaauw

Research output: Working paperProfessional

Abstract

We focus on the dynamic relation between wage increases, promotions and job changes. We relate our empirical analyses to the theoretical model of Gibbons and Waldman (1999). In the empirical analyses we use the Portuguese matched employer-employee data Quadros de Pessoal. We conclude from finding significant serial correlation in wage increases and promotion rates that employer learning about the worker's ability might be important. Furthermore, we find that the Portuguese labor market is not competitive. Finally, we argue that employer-reported promotion relate to a large extent to wage increases rather than changes in job tasks and complexity.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2006

Publication series

NameDiscussion paper TI
No.06-084/3

Fingerprint

Wage dynamics
Wages
Employers
Workers
Matched employer-employee data
Serial correlation
Job change
Labour market

Cite this

Dias da Silva, A., & Klaauw, B. V. D. (2006). Wage Dynamics and Promotions inside and between Firms. (Discussion paper TI; No. 06-084/3). Amsterdam: Tinbergen Instituut.
Dias da Silva, Antonio ; Klaauw, Bas van der. / Wage Dynamics and Promotions inside and between Firms. Amsterdam : Tinbergen Instituut, 2006. (Discussion paper TI; 06-084/3).
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Dias da Silva, A & Klaauw, BVD 2006 'Wage Dynamics and Promotions inside and between Firms' Discussion paper TI, no. 06-084/3, Tinbergen Instituut, Amsterdam.

Wage Dynamics and Promotions inside and between Firms. / Dias da Silva, Antonio; Klaauw, Bas van der.

Amsterdam : Tinbergen Instituut, 2006. (Discussion paper TI; No. 06-084/3).

Research output: Working paperProfessional

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AU - Dias da Silva, Antonio

AU - Klaauw, Bas van der

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AB - We focus on the dynamic relation between wage increases, promotions and job changes. We relate our empirical analyses to the theoretical model of Gibbons and Waldman (1999). In the empirical analyses we use the Portuguese matched employer-employee data Quadros de Pessoal. We conclude from finding significant serial correlation in wage increases and promotion rates that employer learning about the worker's ability might be important. Furthermore, we find that the Portuguese labor market is not competitive. Finally, we argue that employer-reported promotion relate to a large extent to wage increases rather than changes in job tasks and complexity.

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Dias da Silva A, Klaauw BVD. Wage Dynamics and Promotions inside and between Firms. Amsterdam: Tinbergen Instituut. 2006. (Discussion paper TI; 06-084/3).