The determinants of promotions and firm separations

Abstract

This paper identi es and compares the determinants of within- and between- rm job mobility in Portugal. Estimates are based on models that distinguish promotions by whether or not they involve a change in the tasks performed, and separations by the time workers take to enter a new rm. Both worker and rm observed characteristics emerge as important factors in the analysis. Firm unobserved heterogeneity is relevant, evidence suggests that rms vary more in their unobserved propensity to promote than in the case of separations. Overall, this study highlights two main issues; the role of rms in the process of job mobility, and the importance of distinguishing not only between types of separations from rms, but also between types of promotions within rms.