Promotions and Job Tenure

Michael R. Pergamit and Jonathan R. Veum


In this paper, data from the National Longitudinal Survey of Youth are used to analyze the determinants and the consequences of a promotion among young workers. The majority of events that workers label as a "promotion" do not involve any change in position or duties. Most promotions are simply an upgrade of the current position. The worker is typically the only person considered for the promotion. Men are more likely to be promoted than women and whites more so than blacks or Hispanics. The acquisition of company training and the receipt of a prior promotion are two of the most important determinants of promotion. Consequences of promotion include increased wages, training receipt, supervisory responsibilities, and job satisfaction. There is little evidence that promotion has a direct impact on job attachment.