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Firmwide Versus Establishment-Specific Labor Market Practices

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  • David S. Kaplan

    (Instituto Tecnolgico Autnomo de Mxico)

  • Brooks Pierce

    (U.S. Bureau of Labor Statistics)

Abstract

We construct a novel data set matching occupational data from separate establishments to the establishments' corporate parents, in order to study labor market links across establishments within diverse firms. We find substantial wage components common to all establishments within firms, even after netting out industry and occupation effects. However, employment changes are localized to establishments. The data suggest that internal labor markets of multiestablishment firms are linked throughout their entire organizations, but that establishment-level demand shocks do not permeate the firm. 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • David S. Kaplan & Brooks Pierce, 2005. "Firmwide Versus Establishment-Specific Labor Market Practices," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 569-578, August.
    • Handle: RePEc:tpr:restat:v:87:y:2005:i:3:p:569-578
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    Cited by:

    1. Richard Duhautois & Fabrice Gilles & Héloïse Petit, 2012. "Worker flows and establishment wage differentials : a breakdown of the relationship," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00833872, HAL.
    2. Вишневская Н. Т., 2018. "Международные Стандарты Статистики Заработной Платы И Практика Их Использования В Развитых Странах," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 1, pages 89-108.
    3. Nina Vishnevskaya, 2018. "Methodological Approaches to Wage Statistics in Developed Market Economies," Public administration issues, Higher School of Economics, issue 1, pages 89-108.

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