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I'd say a qualified "yes." I've never worked as a contractor -- I've always been a regular employee. Let's see, the years at each company has gone like this for me:
4-12-3-5-1-1-4

The 12 years was good for family stability, etc., but not good for salary increases. Job hopping cost me some vacation & benefit increases, but overall the salary increases will be more important -- particularly as the years push me closer to an eventual retirement.

On the other hand, if you are in line for internal promotions then there is a balancing incentive to stick around and not job hop -- the salary bump may be a bit less, but that should be offset by not having the stress of moving. Plus you get to keep your vacation.