@TechReport{iza:izadps:dp12969,
            	author={Arellano-Bover, Jaime},
            	title={Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size},
            	year={2020},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12969},
            	url={https://www.iza.org/index.php/publications/dp12969},
	abstract={I study the long-term effects of landing a first job at a large firm versus a small one using Spanish social security data. Size could be a relevant employer attribute for inexperienced workers since large firms are associated with greater training, higher wages, and enhanced productivity. The key empirical challenge is selection into first jobs – for instance, more able people may land jobs at large firms. I address this challenge developing an instrumental-variables approach that, while keeping business-cycle conditions fixed, leverages variation in the composition of labor demand that labor-market entrants face. 
I find that initially matching with a larger firm substantially improves long-term outcomes such as lifetime income, and that these benefits persist through subsequent jobs. Additional results point to mechanisms related to search frictions and better skill-development at large firms. Together, these findings shed light on how heterogeneous firms persistently impact young workers' trajectories.},
	keywords={first job;employer size;firm heterogeneity;young workers;on-the-job skills;lifetime income},
            }