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
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
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource, 37 S.
Language
Englisch
Notes
Veröffentlichungsversion

Bibliographic citation
IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung ; Bd. 19/2007

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Nürnberg
(when)
2007
Creator
Contributor
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)

URN
urn:nbn:de:0168-ssoar-320455
Rights
Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
15.08.2025, 7:27 AM CEST

Data provider

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Associated

Time of origin

  • 2007

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