Internal and external labor markets: an analysis of matched longitudinal employer-employee data

We decompose the real annual full time compensation costs of 1.1 million French workers followed over 12 years into a part that reflects their external opportunity wage and a part that reflects their internal wage rate. Using these components of compensation we investigate the extent to which firm-s...

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Bibliographic Details
Main Authors: Abowd, John M. 1951- (Author), Kramarz, Francis (Author)
Format: Book
Language:English
Published: Cambridge, Mass. 1997
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 6109
Subjects:
Online Access:Volltext
Summary:We decompose the real annual full time compensation costs of 1.1 million French workers followed over 12 years into a part that reflects their external opportunity wage and a part that reflects their internal wage rate. Using these components of compensation we investigate the extent to which firm-size wage differentials and inter-industry wage differentials are due to variability in the external wage (person effects) versus variability in the internal wage (firm effects). For France, we find that most of the firm-size wage effect and most of the inter-industry wage effect is due to person effects differences in the external wage rates.
Physical Description:21 S. graph. Darst.

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