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Individual Heterogeneity, Job Matching, and Returns to Tenure in Germany

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  • Kenneth A. Couch

Abstract

Data from the German Socio-Economic Panel are used to examine the roles of individual heterogeneity and job match quality in generating commonly observed wage-tenure profiles. The evidence presented in the paper indicates that once those factors are reflected in the estimations, the returns to seniority are no longer measurable. Job match quality appears to be the dominant factor in the German labor market in generating an upward sloping wage-tenure profile.

Suggested Citation

  • Kenneth A. Couch, 2001. "Individual Heterogeneity, Job Matching, and Returns to Tenure in Germany," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 39-43.
    • Handle: RePEc:diw:diwvjh:70-10-6
    DOI: 10.3790/vjh.70.1.39
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    References listed on IDEAS

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    1. Ruhm, Christopher J, 1990. "Do Earnings Increase with Job Seniority?," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 143-147, February.
    2. Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 437-459.
    3. Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-543, June.
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