Welcome to a CEDAR seminar with Kreske Ecker, Umeå School of Business, Economics and Statistics (USBE).
While prior research suggests that new firms offer their workers lower initial wages compared to incumbent firms, less attention has been paid to the role of firm age for young people and their earnings mobility over time. A particularly important question is whether the individual wage gap between new and incumbent firms persists or disappears over time. In this study, we estimate the causal effect of the age of the firm in which individuals begin their working life on subsequent earnings accumulation over a long time period (17 – 21 years). We do so by applying a novel approach combining methods from causal inference and functional data analysis. Our results show that for young people entering the labour market in 1999, there is a significant negative effect of starting a career in a new firm, as opposed to an older one, which persists over time. For those entering the labour market in 1995 however, the corresponding effect on earnings accumulation is not statistically significant when differences in labour force composition between new and older firms are taken into account.
All interested are welcome to participate in this seminar.
This seminar is held at floor 4 NBET and online via Zoom. If you wish to participate via zoom contact Mojgan Padyab.