Essays on wages, promotions and performance evaluations
This dissertation comprises four empirical research articles that use personnel
data from a large university and worker-level panel data from Finland to
examine the determinants of wages, promotions and employee performance
evaluations. The first article employs personnel data to examine the importance
of worker output and job seniority as predictors of employee performance
evaluations and promotions. The results suggest that better-performing
employees – with output measured both in absolute terms and relative to peers –
were more likely to be assigned higher performance grades and had a higher
probability of being promoted to more complex jobs than their peers with similar
characteristics but lower output. Additionally, the findings suggest that
employees with more job seniority were evaluated as exhibiting higher
performance than were their equally productive but less-experienced peers. The
second article employs personnel data to evaluate the role of gender in internal
promotion, employee performance evaluation and earnings determination. The
results indicate that gender had no effect on the probability of being promoted,
conditional on productivity, nor did it play a role in the performance evaluation
of employees. Furthermore, the observed male premium in earnings was mainly
attributable to individual differences in worker output and background attributes.
The third article employs sample data to examine the responsiveness of the pay
level to local unemployment conditions and to test the hypothesis that pay level
is more responsive to the unemployment level in less agglomerated and more
remote regions. The results consistently suggest that the pay level is lower in
localities with a higher unemployment level. The results provide some evidence
that the unemployment elasticity of pay varies across different regions of the
country, but once the unobserved worker heterogeneity is controlled for, the
elasticity is unrelated to the degree of regional agglomeration. The fourth article
employs sample data to examine the implications of using alternative measures
of unemployment to estimate the local unemployment elasticity of pay. The
results illustrate that the estimate of the local unemployment elasticity of pay
varies considerably depending on the unemployment measure and the
estimation technique used in the analysis but is not sensitive to the level of
geographical disaggregation at which unemployment is measured.
...


Publisher
University of JyväskyläISBN
978-951-39-7136-6ISSN Search the Publication Forum
1457-1986Keywords
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