Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size

• 成果类型: Article
• 署名作者: Arellano-Bover, Jaime
• 署名单位: Yale University
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/723500
• 发表日期: 2024
• 页码: 549-589
• 关键词: labor-market conditions; employer-size; models; IMPACT; identification; INEQUALITY; recession; selection; mobility; losses

摘要

I study the long-term effects of landing a first job at a large firm versus a small one using Spanish administrative data. Size could be a relevant employer attribute for inexperienced workers since large firms are associated with greater productivity, wages, and training. The key empirical challenge is selection into first jobs based on unobserved worker characteristics. I develop an instrumental variable approach that, keeping business cycle conditions fixed, leverages variation in the composition of labor demand that labor market entrants face. Initially matching with a larger firm persistently improves long-term outcomes, even through subsequent jobs. Mechanisms suggest better skill development at large firms.