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Promotions and Wage Growth

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  • McCue, Kristin

Abstract

This article presents evidence that internal mobility, defined as a promotion or other position change, is an important source of wage growth. It accounts for approximately 15 percent of wage growth over the life cycle for white and black men but less for women. The incidence of promotions and other position changes appears tied to the wage level: better paid workers are more likely to be promoted. The life-cycle incidence of internal mobility looks similar to that for conventionally defined job mobility. Most moves are made early in the career; mobility declines both with time in position and with experience. Copyright 1996 by University of Chicago Press.

Suggested Citation

  • McCue, Kristin, 1996. "Promotions and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 175-209, April.
    • Handle: RePEc:ucp:jlabec:v:14:y:1996:i:2:p:175-209
    DOI: 10.1086/209808
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    References listed on IDEAS

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    1. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, October.
    2. Jacob Mincer & Boyan Jovanovic, 1981. "Labor Mobility and Wages," NBER Chapters, in: Studies in Labor Markets, pages 21-64, National Bureau of Economic Research, Inc.
    3. James L. Medoff & Katharine G. Abraham, 1981. "Are Those Paid More Really More Productive? The Case of Experience," Journal of Human Resources, University of Wisconsin Press, vol. 16(2), pages 186-216.
    4. Brown, James N & Light, Audrey, 1992. "Interpreting Panel Data on Job Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 219-257, July.
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