The determinants of promotions and firm separations

Publication type

Conference Paper

Series

DIW Berlin, Brown Bag Seminar

Author

Publication date

November 12, 2008

Abstract:

This paper identifies and compares the determinants of within- and between-firm job
mobility in Portugal. Estimates are based on models that distinguish promotions by
whether or not they involve a change in the tasks performed, and separations by the time
workers take to enter a new firm. Both worker and firm observed characteristics emerge
as important factors in the analysis. Firm unobserved heterogeneity is relevant, evidence
suggests that firms vary more in their unobserved propensity to promote than in the case
of separations. Overall, this study highlights two main issues; the role of firms in the
process of job mobility, and the importance of distinguishing not only between types of
separations from firms, but also between types of promotions within firms.

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