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Why Do Wages Increase with Tenure? On-the-Job Training and Life-Cycle Wage Growth Observed within Firms

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Author Info
Brown, James N
Abstract

Empirical results in this paper indicate that firm-specific wage growth occurs almost exclusively during periods of on-the-job training. This finding suggests that within-firm wage growth is mainly determined by contemporaneous productivity growth. The results provide no evidence that contractual considerations are an important source of firm-specific wage growth. Copyright 1989 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 79 (1989)
Issue (Month): 5 (December)
Pages: 971-91
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Handle: RePEc:aea:aecrev:v:79:y:1989:i:5:p:971-91

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  1. Byron W. Brown & Stephen A. Woodbury, 1995. "Seniority, External Labor Markets, and Faculty Pay," Staff Working Papers 95-37, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
    Other versions:
  2. Burhanettin Kuruscu, 2006. "Training and Lifetime Income," American Economic Review, American Economic Association, vol. 96(3), pages 832-846, June. [Downloadable!]
  3. Michael Waldman, 1990. "A Signalling Explanation for Seniority Based Promotions and Other Labor Market Puzzles," UCLA Economics Working Papers 599, UCLA Department of Economics. [Downloadable!]
  4. Parrado, E. & Wolff, E., 1999. "Occupational and Industry Mobility in the United States, 1969-1992," Working Papers 99-20, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  5. William J. Moore & Robert J. Newman & Geoffrey K. Turnbull, . "The Experience-Earnings Profile: Productivity-Augmenting or Purely Contractual?," Departmental Working Papers 2002-13, Department of Economics, Louisiana State University. [Downloadable!]
  6. Daniel Parent, 1995. "Wages and Mobility: The Impact of Employer-Provided Training," CIRANO Working Papers 95s-27, CIRANO. [Downloadable!]
    Other versions:
  7. Jorn-Steffen Pischke, 1996. "Continuous Training in Germany," NBER Working Papers 5829, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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