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The Structure of WagesAn International Comparison$
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Edward P. Lazear and Kathryn L. Shaw

Print publication date: 2009

Print ISBN-13: 9780226470504

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226470511.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 28 September 2021

Wage Structure, Raises, and Mobility

Wage Structure, Raises, and Mobility

An Introduction to International Comparisons of the Structure of Wages within and across Firms

(p.1) Wage Structure, Raises, and Mobility
The Structure of Wages

Edward P. Lazear

Kathryn L. Shaw

University of Chicago Press

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

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