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Reexamining the Wage, Tenure and Experience Relationship

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  • Williams, Nicolas

Abstract

Despite considerable empirical research, a debate still rages about the relative importance of tenure and experience in determining wages given the existence of unobserved heterogeneity. Using a data set well suited to this problem, the author finds after correcting for unobserved heterogeneity that tenure increases wages only in the first several years of employment. The accumulated effect of general labor-market experience increases wages substantially over the career. This evidence suggests that specific human capital accumulation is relatively less important than some might believe. This result is robust to different estimation techniques that have been suggested in the literature. Copyright 1991 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 73 (1991)
Issue (Month): 3 (August)
Pages: 512-17

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Handle: RePEc:tpr:restat:v:73:y:1991:i:3:p:512-17

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Maciej Szelewicki & Joanna Tyrowicz, 2009. "Labour Market Racial Discrimination in South Africa Revisited," Working Papers 2009-08, Faculty of Economic Sciences, University of Warsaw.
  2. Cingano, Federico, 2003. "Returns to specific skills in industrial districts," Labour Economics, Elsevier, vol. 10(2), pages 149-164, April.
  3. DEGEORGE, François & JENTER, Dirk & MOEL, Alberto & TUFANO, Peter, 2000. "Selling company shares to reluctant employees : France Télécom's experience," Les Cahiers de Recherche 703, HEC Paris.
  4. Cornelia Luchsinger & Jörg Wild & Rafael Lalive, 2001. "Do Wages Rise with Job Seniority? The Swiss Case," CEPE Working paper series 01-07, CEPE Center for Energy Policy and Economics, ETH Zurich.
  5. Michal Myck & Gillian Paull, 2004. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W04/16, Institute for Fiscal Studies.
  6. Lydon, Reamonn & Walker, Ian, 2004. "Welfare-to-Work, Wages and Wage Growth," IZA Discussion Papers 1144, Institute for the Study of Labor (IZA).
  7. Nicolas Williams, 2004. "Seniority, Experience, and Wages in the UK," University of Cincinnati, Economics Working Papers Series 2004-06, University of Cincinnati, Department of Economics.
  8. Joseph G. Altonji & Nicolas Williams, 1992. "The Effects of Labor Market Experience, Job Seniority, and Job Mobility on Wage Growth," NBER Working Papers 4133, National Bureau of Economic Research, Inc.

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