Earnings functions are estimated using personnel data of a German company. Results support a positive correlation between human capital, hierarchical levels, promotions, and wages. Moreover, promoted and newly hired employees start at the bottom of a level's wage distribution.

Purpose – This paper seeks to analyse to what extent absolute wage levels, relative wages compared with colleagues, and the position in a firm's hierarchy affect workers' absenteeism behaviour. Design/methodology/approach – The paper uses personnel data of a large German company from January...