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Seniority wages and establishment characteristics

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  • Zwick, Thomas

Abstract

A representative linked employer–employee panel and an innovative two-step estimation strategy are used to show that large and profitable establishments as well as establishments with a highly qualified workforce pay high seniority wages. Also collective bargaining coverage, works councils and reduced working time for older employees are positively correlated with seniority wages, the share of foreigners, females as well as initial wage levels for job entrants are negatively correlated. These results support an agency based motivation for seniority wages with older employees' wages set higher than their productivity.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 6 ()
Pages: 853-861

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Handle: RePEc:eee:labeco:v:18:y:2011:i:6:p:853-861

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Seniority wages; Establishment characteristics; Linked employer–employee data;

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References

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Cited by:
  1. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.

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