Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: Wage mobility among low wage earners has previously been focussing on the

characteristics of the low wage earners, whereas the role of the firm has been neglected. The

purpose of this study is to focus on the characteristics of the firms when analysing variation in

wage mobility. The empirical findings confirm that the characteristics of the employing firm

indeed matter for low-wage employees´ likelihood of escaping a low-wage job. Especially does

the employing firm affect the destination state – i.e. where a low-wage worker goes after having

finished a low-wage job, and the findings enable me to identify three types of firms: career firms

with high within-firm upward wage mobility, stepping-stone firms with high between-firm

upward wage mobility and dead-end firms with low upward wage mobility.

Keywords: Low wage earners; wage mobility; firm behaviour; employer-employee relations

JEL-codes: J31; J41; J63; M51; M52

25 pages, December 10, 2004

Note: Also available as chapter in: Job Quality and Employer Behaviour / Ed.by Stephen Bazen, Claudio Lucifora and Wiemer Salverda. Palgrave 2005

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