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Cyclical Job Ladders by Firm Size and Firm Wage

Author: John Haltiwanger; Henry Hyatt; Lisa B Kahn; Erika McEntarfer; National Bureau of Economic Research.
Publisher: Cambridge, Mass. National Bureau of Economic Research 2017.
Series: Working paper series (National Bureau of Economic Research), no. w23485.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We study whether workers progress up firm wage and size job ladders, and the cyclicality of this movement. Search theory predicts that workers should flow towards larger, higher paying firms. However, we see little evidence of a firm size ladder, partly because small, young firms poach workers from all other businesses. In contrast, we find strong evidence of a firm wage ladder that is highly procyclical. During the  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: John Haltiwanger; Henry Hyatt; Lisa B Kahn; Erika McEntarfer; National Bureau of Economic Research.
OCLC Number: 1008875998
Notes: June 2017.
Description: 1 online resource
Series Title: Working paper series (National Bureau of Economic Research), no. w23485.
Responsibility: John Haltiwanger, Henry Hyatt, Lisa B. Kahn, Erika McEntarfer.

Abstract:

We study whether workers progress up firm wage and size job ladders, and the cyclicality of this movement. Search theory predicts that workers should flow towards larger, higher paying firms. However, we see little evidence of a firm size ladder, partly because small, young firms poach workers from all other businesses. In contrast, we find strong evidence of a firm wage ladder that is highly procyclical. During the Great Recession, this firm wage ladder collapsed, with net worker reallocation to higher wage firms falling to zero. The earnings consequences from this lack of upward progression are sizable.

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