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Working papers
Working Paper
CESifo Working Paper Series No. 9227
Ingrid Huitfeldt, Andreas R. Kostol, Jan Sebastian Nimczik, Andrea Weber (2021)
Subject(s)
Economics, politics and business environment
Keyword(s)
internal labor markets, organization of labor, wage setting
JEL Code(s)
J310, J620, M500
This paper develops a new method to study how workers’ career and wage profiles are shaped by internal labor markets (ILM) and job hierarchies in firms. Our paper tackles the conceptual challenge of organizing jobs within firms into hierarchy levels by proposing a data-driven ranking method based on observed worker flows between occupations within firms. We apply our method to linked employer-employee data from Norway that records fine-grained occupational codes and tracks contract changes within firms. Our findings confirm existing evidence that is primarily based on case studies for single firms. We expand on this by documenting substantial heterogeneity in the structure and hierarchy of ILMs across a broad range of large firms. Our findings on wage and promotion dynamics in ILMs are consistent with models of careers in organizations.
Working Paper
NBER Working Paper No. 26239
Gregor Jarosch, Jan Sebastian Nimczik, Isaac Sorkin (2019)
Subject(s)
Economics, politics and business environment
Keyword(s)
Market Power, Search and Matching, Wages
JEL Code(s)
J31, J42
We build a framework where firm size is a source of market power in a frictional labor market. The key mechanism is that a granular employer can eliminate its own vacancies from a worker’s outside option in the wage bargain. Hence, a granular employer does not compete with itself for workers. We derive a structural mapping from a microfounded concentration index to average wages. Using the framework in Austrian micro-data, we find that granular market power depresses wages by 9-13 percent and can explain 40 percent of the observed decline in the labor share from 1997 to 2015. Merging the two largest firms in every labor market depresses market-wide wages by six percent.
This working paper was also published in the IZA Institute of Labour Economics discussion paper series: https://www.iza.org/publications/dp/12574
Pages
61
ISSN (Print)
0898-2937
Working Paper
2016 UniCredit Econ Job Market Best Paper Award
Keyword(s)
Local labor markets, job-to-job transitions, firm networks, stochastic block model, community detection, geographic concentration
JEL Code(s)
J61, J62, R12, R23
Pages
92
Working Paper
IZA Discussion Paper No. IZA DP No. 11536
Albrecht Bohne, Jan Sebastian Nimczik (2018)
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
Learning, tax avoidance, information frictions, taxation and development, bunching, behavioral responses to taxation
JEL Code(s)
D83, H24, H26, H32, O17
Pages
93