Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2006-10-02 Number: 06-084/3 Author-Name: Antonio Dias da Silva Author-Email: firstname.lastname@example.org Author-Workplace-Name: Vrije Universiteit Amsterdam Author-Name: Bas van der Klaauw Author-Email: email@example.com Author-Workplace-Name: Vrije Universiteit Amsterdam Title: Wage Dynamics and Promotions inside and between Firms Abstract: This discussion paper resulted in a publication in the 'Journal of Population Economics', 2011, 24, 1513-1548.
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. Classification-JEL: M5; J6; L2 Keywords: learning; competition; dynamic panel data models; matched employer-employee data File-Url: http://papers.tinbergen.nl/06084.pdf File-Format: application/pdf File-Size: 265232 bytes Handle: RePEc:tin:wpaper:20060084