Wage Structure, Raises, and Mobility

Edward P. Lazear and Kathryn L. Shaw

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage Structure, Raises, and Mobility

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This chapter uses data from Denmark, Finland, Norway, Sweden, Belgium, France, Germany, Italy, the Netherlands, and the United States to review the general patterns about firm wage structure, promotion, hiring, and mobility patterns. It then explores the structure of wage levels and the alternative models of interpreting these structures, before turning to wage growth rates and mobility. The main finding is that countries are remarkably similar in their structures of wage levels and of wage changes. Despite very different labor institutions across countries, the evidence favoring high within-firm wage dispersion appears across countries. Mobility levels differ across countries, but even here, mobility patterns seem relatively consistent. Despite different labor market institutions, countries do not differ dramatically in their wage patterns. Firms that allow high wage spread also have higher wages. Thus, most firms have many different jobs within the firm; wage variance is high within firms.

Keywords: firm wage structure; promotion; hiring; mobility patterns; labor market institutions; Denmark; Finland; Germany; Netherlands; United States

Chapter.  17298 words.  Illustrated.

Subjects: International Economics

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