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Careers in Firms: The Role of Learning about Ability and Human Capital Acquisition

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  • Elena Pastorino

Abstract

Job and wage mobility can arise from firms and workers learning about workers’ ability and from workers acquiring human capital with experience. To date, the relative importance of these two mechanisms is debated. Using administrative data from one firm, I estimate a structural model that integrates them. I find the direct effect of beliefs about ability on wages, which existing work has focused on, to be small. However, by improving the sorting of workers to the firm’s jobs, learning about ability is indirectly a crucial determinant of wage growth and dispersion.

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  • Elena Pastorino, 2024. "Careers in Firms: The Role of Learning about Ability and Human Capital Acquisition," Journal of Political Economy, University of Chicago Press, vol. 132(6), pages 1994-2073.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/728454
    DOI: 10.1086/728454
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