On the industry experience premium and labor mobility
AbstractThere is evidence that experience premium differs across industries. We propose a theoretical model for explaining these differences. We assume that labor mobility brings external knowledge to the firm, which increases its productivity. We find that industry experience premium is decreasing in inter-firm mobility costs, while increasing in the learning-by-doing and the technological level of the industry. Moreover, it has a U-shape relationship with the level of learning-by-hiring, the substitutability between different types of experienced workers and the variety of knowledge in the industry. Results are consistent with the empirical findings that R&D-intensive industries have steeper wage profiles.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 17 (2010)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/labeco
Labor mobility Industry experience premium Wage growth Learning-by-hiring;
Other versions of this item:
- Montserrat Vilalta-Bufi, 2008. "On the industry experience premium and labor mobility," Working Papers in Economics 208, Universitat de Barcelona. Espai de Recerca en Economia.
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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