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Within- and Cross-Firm Mobility and Earnings Growth
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Within- and Cross-Firm Mobility and Earnings Growth

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  • Frederiksen, Anders

    (Aarhus University)

  • Halliday, Timothy J.

    (University of Hawaii at Manoa)

  • Koch, Alexander K.

    (Aarhus University)

Abstract

While it is well established that both promotions within firms and mobility across firms lead to significant earnings progression, little is known about the interaction between these types of mobility. Exploiting a large Danish panel data set and controlling for unobserved individual heterogeneity, we show that cross-firm moves at the non-executive level provide sizeable short-run gains (similar to the effect of a promotion), consistent with the existing literature. These gains, however, appear modest when compared with the persistent impact on earnings growth of promotions (either within or across firms) and subsequent mobility at a higher hierarchy level.

Suggested Citation

  • Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "Within- and Cross-Firm Mobility and Earnings Growth," IZA Discussion Papers 5163, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5163
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    Cited by:

    1. Takii, Katsuya & Sasaki, Masaru & Wan, Junmin, 2020. "Synchronized job transfer and task-specific human capital," Journal of the Japanese and International Economies, Elsevier, vol. 56(C).
    2. Forsythe, Eliza, 2023. "Occupational Job Ladders within and between Firms," IZA Discussion Papers 16682, Institute of Labor Economics (IZA).
    3. Frederiksen, Anders & Lange, Fabian & Kriechel, Ben, 2017. "Subjective performance evaluations and employee careers," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 408-429.
    4. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Zhu, Susan Chun, 2020. "Globalization, the jobs ladder and economic mobility," European Economic Review, Elsevier, vol. 127(C).
    5. Anders Frederiksen & Takao Kato, 2018. "Human Capital and Career Success: Evidence from Linked Employer‐Employee Data," Economic Journal, Royal Economic Society, vol. 128(613), pages 1952-1982, August.
    6. Cassidy, Hugh & DeVaro, Jed & Kauhanen, Antti, 2016. "Promotion signaling, gender, and turnover: New theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 140-166.
    7. Carl Davidson & Fredrik Heyman & Steven Matusz & Fredrik Sjöholm & Susan Chun Zhu, 2023. "Globalization, recruitments, and job mobility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 357-386, May.
    8. Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "What Do We Work For? An Anatomy of Pre- and Post-Tax Earnings Growth," IZA Discussion Papers 5298, Institute of Labor Economics (IZA).
    9. Frederiksen, Anders, 2013. "Incentives and earnings growth," Journal of Economic Behavior & Organization, Elsevier, vol. 85(C), pages 97-107.
    10. Davidson, Carl & Matusz, Steven & Chun Zhu, Susan & Heyman, Fredrik & Sjoholm, Fredrik, 2018. "Globalization and the Jobs Ladder," Working Papers 2018-8, Michigan State University, Department of Economics.

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    More about this item

    Keywords

    dynamic panel data models; promotions; earnings growth; matched employer-employee data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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