Enriching a Theory of Wage and Promotion Dynamics Inside Firms
In previous work we showed that a model that integrates job assignment, human-capital acquisition, and learning can explain several empirical findings concerning wage and promotion dynamics inside firms. In this paper we extend that...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/3537 |
| _version_ | 1826189471534546944 |
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| author | Gibbons, Robert Waldman, Michael |
| author_facet | Gibbons, Robert Waldman, Michael |
| author_sort | Gibbons, Robert |
| collection | MIT |
| description | In previous work we showed that a model that integrates job assignment,
human-capital acquisition, and learning can explain several empirical findings
concerning wage and promotion dynamics inside firms. In this paper we extend that
model in two ways. First, we incorporate schooling into the model and derive a
number of testable implications that we then compare with the available empirical
evidence. Second, and more important, we show that introducing "task-specific"
human capital allows us to produce cohort effects (i.e., the finding that a cohort that
enters a firm at a low wage will continue to earn below-average wages years later).
We argue that task-specific human capital is a realistic concept and may have many
important implications. We also discuss limitations of our (extended) approach |
| first_indexed | 2024-09-23T08:15:37Z |
| format | Working Paper |
| id | mit-1721.1/3537 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T08:15:37Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/35372019-04-14T07:18:04Z Enriching a Theory of Wage and Promotion Dynamics Inside Firms Gibbons, Robert Waldman, Michael Wage Dynamics Promotion Dynamics Human Capital In previous work we showed that a model that integrates job assignment, human-capital acquisition, and learning can explain several empirical findings concerning wage and promotion dynamics inside firms. In this paper we extend that model in two ways. First, we incorporate schooling into the model and derive a number of testable implications that we then compare with the available empirical evidence. Second, and more important, we show that introducing "task-specific" human capital allows us to produce cohort effects (i.e., the finding that a cohort that enters a firm at a low wage will continue to earn below-average wages years later). We argue that task-specific human capital is a realistic concept and may have many important implications. We also discuss limitations of our (extended) approach 2003-08-01T20:14:51Z 2003-08-01T20:14:51Z 2003-08-01T20:14:51Z Working Paper http://hdl.handle.net/1721.1/3537 en_US MIT Sloan School of Management Working Paper;4324-03 IWER Working Paper No.;07-2003 105225 bytes application/pdf application/pdf |
| spellingShingle | Wage Dynamics Promotion Dynamics Human Capital Gibbons, Robert Waldman, Michael Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title | Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title_full | Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title_fullStr | Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title_full_unstemmed | Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title_short | Enriching a Theory of Wage and Promotion Dynamics Inside Firms |
| title_sort | enriching a theory of wage and promotion dynamics inside firms |
| topic | Wage Dynamics Promotion Dynamics Human Capital |
| url | http://hdl.handle.net/1721.1/3537 |
| work_keys_str_mv | AT gibbonsrobert enrichingatheoryofwageandpromotiondynamicsinsidefirms AT waldmanmichael enrichingatheoryofwageandpromotiondynamicsinsidefirms |