Do initial conditions persist between firms? An analysis of firm-entry cohort effects and job losers using matched employer-employee data
Abstract: "Influential studies have suggested that initial conditions can have persistent effects on workers' careers within firms. It is a longstanding question among economists whether such lasting wage differentials among firms and industries are due to persistent deviations of wages from workers' skills due to contracting and market frictions, or whether they arise from permanent differences among workers' skills. However, there is currently little representative evidence on firm-entry cohort effects and few explicit tests of alternative explanations. We use information on the universe of workers from a large German manufacturing sector from matched employer-employee records to show that firm-entry cohort effects are a pervasive phenomenon for the firms we study. The cohort effects we estimate are highly heterogeneous across firms and slowly fade over time. We also find that wage premiums on the past job are lost at job displacement, and that initial positive effects on wage levels at th
- Alternative title
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Zum Fortbestehen unterschiedlicher Eintrittsbedingungen auf betrieblicher Ebene: eine Analyse von Kohorteneffekten beim Betriebseintritt und beim Verlust der Stelle basierend auf Matched-Employer-Employee-Daten
- Location
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Deutsche Nationalbibliothek Frankfurt am Main
- Extent
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Online-Ressource, 37 S.
- Language
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Englisch
- Notes
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Veröffentlichungsversion
- Bibliographic citation
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IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung ; Bd. 19/2007
- Classification
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Wirtschaft
- Event
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Veröffentlichung
- (where)
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Nürnberg
- (when)
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2007
- Creator
- Contributor
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Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
- URN
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urn:nbn:de:0168-ssoar-320455
- Rights
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Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Last update
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15.08.2025, 7:27 AM CEST
Data provider
Deutsche Nationalbibliothek. If you have any questions about the object, please contact the data provider.
Associated
- Wachter, Till von
- Bender, Stefan
- Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
Time of origin
- 2007