Mike Gibbs (University of Chicago Graduate School of Business), Kathryn Ierulli, Eva Meyersson-Milgrom

Occupational Labor Markets

Using matched worker-firm personnel data covering much of the Swedish private sector from 1970-1990, we analyze the causes and effects of three types of career moves: changes in occupation, firm, and hierarchical level (the latter for moves both within and between firms). Workers change occupations less than they change firms, suggesting attachment to “occupational labor markets” is as important as attachment to internal labor markets. Career job search has a two-stage pattern: occupational changes tend to occur before firm changes. All three career moves have large effects on wage growth; promotions have the largest effect. The wage effects of simultaneous changes (e.g., firm and occupation together) are larger than the sum of individual effects. Larger firms operate more effective internal labor markets, providing better opportunities for occupational and hierarchical level change. There is evidence of fast tracking in both promotions and exits. We find little effect of gender on any of these phenomena.

Keywords: Careers, internal labor markets, occupations

JEL Codes: J41, M5

Session: 4c   Room 2001   Category: Internal labour markets

Paper