We study career and wage dynamics within and between firms using a large linked employer-employee panel dataset spanning 26 years. We construct six-level hierarchies for more than 5,000 firms. We replicate most of the analyses from Baker, Gibbs, and Holmström (1994) and make some extensions....

In Finnish manufacturing, the gender wage gap more than doubles during the first ten years in the labour market. This paper studies the factors contributing to the gender gap in early-career wage growth. The analysis shows that the size of the gender gap in average wage growth varies with...

Purpose: The purpose of this paper is to provide novel and rigorous evidence on the productivity effect of varying attributes of performance-related pay (PRP) and shows that the details of PRP indeed matter. Design/methodology/approach: In doing so, the authors exploit the panel nature of the...

The aim of this paper is to examine rent sharing under a heterogeneous workforce using Finnish linked employer‐employee data in 1987‐1998. Rent sharing is one component of the empirically estimated firm‐effect and depends on the sensitivity of firm‐level payments to quasi‐rents. It is...

By using weekly records on efficiency for four production lines in a Finnish food-processing plant during the period 1999–2005, the authors investigate the effects on production line performance once changes in Human Resource Management (HRM) practices were instituted. Using time-series...

We study the impact of performance-related pay (PRP) on gender wage differences using Finnish-linked employer--employee panel data. Controlling for unobserved person and firm effects, we find that bonuses increase women's earnings slightly less than men's, but the economic significance of the...

This article examines the effect of innovative work practices on the prevalence of sickness absence and accidents at work. We focus on the "bundles" of workplace innovations that consist of self-managed teams, information sharing, employer-provided training, and incentive pay. We use nationally...