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Firm-Specific Seniority and Wages

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Author Info
Barth, Erling

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Abstract

This article studies the relationship between seniority and wages. Micro data with more than one observation from each firm are utilized to single out the seniority effect on wages arising within firms from the total seniority wage effect. The results show that the seniority effect arises within firms, but do not support the human capital explanation of the seniority wage profile. Employees with high levels of firm-specific on-the-job training requirements have less steep wage profiles. The results give some support to the theory of delayed compensation as piece rate workers have negligible returns to seniority. Copyright 1997 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 15 (1997)
Issue (Month): 3 (July)
Pages: 495-506
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Handle: RePEc:ucp:jlabec:v:15:y:1997:i:3:p:495-506

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  2. Torbjørn Hægeland, 2001. "Experience and Schooling: Substitutes or Complements?," Discussion Papers 301, Research Department of Statistics Norway. [Downloadable!]
  3. Alberto Bayo-Moriones, 2001. "Seniority-based pay: Is it used as a motivation device?," Working Papers 200103, Department of Business Economics, Universitat Autonoma de Barcelona. [Downloadable!]
  4. Ericson, Thomas, 2004. "Personnel training: a theoretical and empirical review," Working Paper Series 2005:1, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  5. Nikolaos Theodoropoulos & John G. Sessions, 2009. "Tenure, Wage Profiles and Monitoring," University of Cyprus Working Papers in Economics 5-2009, University of Cyprus Department of Economics. [Downloadable!]
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  6. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Maia Güell, 2004. "Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data," CEP Discussion Papers dp0646, Centre for Economic Performance, LSE. [Downloadable!]
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  7. repec:bep:macadv:v:3:y:2003:i:1:p:1117-1117 is not listed on IDEAS
  8. Rita Asplund, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy. [Downloadable!]
  9. Hannu Piekkola, 2002. "Rent Sharing and Efficiency Wages," Discussion Papers 688, The Research Institute of the Finnish Economy. [Downloadable!]
  10. David E. Lebow & Raven E. Saks & Beth Anne Wilson, 1999. "Downward nominal wage rigidity: evidence from the employment cost index," Finance and Economics Discussion Series 1999-31, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  11. Blázquez, Maite & Ramos, Jose, 2008. "Recent Investments in Human Capital and its Effect on the Chances of Escaping from Low-Paid Jobs: The Spanish Case," Working Papers in Economic Theory 2008/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History). [Downloadable!]
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