Job level changes and wage growth

Purpose – The purpose of this paper is to estimate the impact of job level changes on wages accounting for both the potential endogeneity of promotions and measurement error in job level changes. Design/methodology/approach – Instruments for job level changes the workers' use belief about the possibility of a promotion from the previous period. Reasons why the respondent believes that a promotion is not possible are used as a second set of instruments. Also, the paper estimates separate wage effects for men and women. Findings – The paper indicates that promotions carry a roughly 18 percent wage increase; compared to a 7 percent premium when using ordinary least squares estimation. The paper also finds that men receive much larger wage increases when promoted, compared with women. Originality/value – This is the first paper to account for the endogeneity of promotions in wage estimates. Accurately estimating the relationship between job level changes and wages helps people to understand wage growth over a worker's lifetime.Employee turnover, Human capital, Jobs, Pay structures, Promotion

Trade Protection and Capital Imports in the Mexican Manufacturing Sector

Summary Several studies have investigated the link between trade protection and productivity in developing economies. Others have looked into the relationship between technology imports and in-house technology production. This paper contributes to the literature by estimating the effect of trade protection on purchases of foreign capital goods for a panel of Mexican manufacturing plants. Product-market tariffs lower the probability that a plant will import capital goods, while both output and input tariffs are associated with smaller quantities of capital imports. Capital imports are also associated with higher productivity. Thus, trade barriers may indirectly lower productivity by inhibiting the importation of foreign technologies through capital goods.capital imports Latin America Mexico trade protection

The Impact of Job Displacement on Employer Based Health Insurance Coverage

Displaced workers, Employer based health insurance, J65, J32, I10,