Cyclical Job Ladders by Firm Size and Firm Wage
John C. Haltiwanger
Henry R. Hyatt
Lisa B. Kahn
- American Economic Journal: Macroeconomics (Forthcoming)
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.
Forthcoming Article Downloads