- (a) Rio de Janeiro, 1994â2010 0 .02 .04 .06 .08 .1 .12 .14 .16 .18 .2 .22 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Age Within firm wage growth Between firm wage growth (b) Veneto, 1984â2001. 0 .02 .04 .06 .08 .1 .12 .14 .16 .18 .2 .22 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Age Within firm wage growth Between firm wage growth Notes: Average annual change in log wages, separately for firm stayers (within) and firm switchers (between). A3 Figure A4: Mobility across firm classes: Transition matrix.
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- (a) Rio de Janeiro, 1994â2010. 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1 between firm-class var. / between firm var. 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 number of firm classes (b) Veneto, 1984â2001. 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1 between firm-class var. / between firm var. 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 number of firm classes Notes: Ratio between i) between firm-class variance of unexplained wage growth, over ii) between-firm variance of unexplained wage growth, as a function of the number of firm classes (2â30). The logic of decomposing the variance into a within and between components comes from the law of total variance: V ary(Y ) = Ex[V ary(Y |X)] | {z } âwithinâ + V arx[Ey(Y |X)] | {z } âbetweenâ . Denoting unexplained earnings growth by g, Figure B1 plots: V ark[Eg(g|firm-class=k)] V arj [Eg(g|firm=j)] . Figure B2: Density of unexplained earnings growth, by firm class.
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- (a) Rio de Janeiro, 1994â2010. 0 5 10 15 -.4 -.2 0 .2 .4 .6 k=1 k=2,...,9 k=10 overall (b) Veneto, 1984â2001. 0 5 10 15 -.4 -.2 0 .2 .4 .6 k=1 k=2,...,9 k=10 overall Notes: Densities of unexplained earnings growth across firm classes. Classes ordered according to mean unexplained earnings growth. Dashed blue line marks the density of the overall distribution. A23 Table B1: Firm-class distributions of unexplained earnings growth.
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- A25 are typically found in high-skill professional occupations (Ghosh and Waldman, 2010), whereas our findings hold across the skill distribution. Moreover, such type of contractual arrangements could be positively correlated with on-the-job learningâi.e., they could be one of the âmechanismsâ underlying firm heterogeneity in learning opportunities since these contracts may be implemented precisely to incentivize workersâ human capital investments and effort (Lazear and Rosen, 1981; Waldman, 1990; Zabojnik and Bernhardt, 2001).
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- A36 Table F1: Workforce characteristics in each class of firms. Rio de Janeiro, 1994â2010.
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