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The Effect of Job Tenure on Wage Offers

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  • Marshall, Robert C
  • Zarkin, Gary A
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    Abstract

    A wage offer can be either acceptable or unacceptable to a worker, but in cross-sectional and panel data only acceptable wage offers are observed. An OLS wage equ ation will not reveal how job tenure affects wage offers but rather w ill reveal how tenure affects acceptable wage offers. By jointly mode ling the firm's determination of the wage offer and the worker's deci sion to accept or reject the offer, the authors are able to estimate the effect of job tenure on wage offers consistently. In contrast to the usual OLS results, they find that job tenure has no statistically significant effect on wage offers. Copyright 1987 by University of Chicago Press.

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    Bibliographic Info

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

    Volume (Year): 5 (1987)
    Issue (Month): 3 (July)
    Pages: 301-24

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    Handle: RePEc:ucp:jlabec:v:5:y:1987:i:3:p:301-24

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Parent, D., 1995. "Matching, Human capital, and the Covariance Structure of Earnings," Cahiers de recherche 9509, Universite de Montreal, Departement de sciences economiques.
    2. Andrew Weiss & Ruqu Wang, 1990. "A Sorting Model of Labor Contracts: Implications for Layoffs and Wage-Tenure Profiles," NBER Working Papers 3448, National Bureau of Economic Research, Inc.
    3. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
    4. Mengistae, Taye, 1999. "The relative effects of skill formation and job matching on wage growth in Ethiopia," Policy Research Working Paper Series 2104, The World Bank.
    5. Hospido, Laura, 2010. "Job Changes and Individual-Job Specific Wage Dynamics," IZA Discussion Papers 5088, Institute for the Study of Labor (IZA).
    6. Joseph G. Altonji & Nicolas Williams, 2005. "Do wages rise with job seniority? A reassessment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(3), pages 370-397, April.
    7. Brunello, Giorgio & Ariga, Kenn, 1997. "Earnings and seniority in Japan: A re-appraisal of the existing evidence and a comparison with the UK," Labour Economics, Elsevier, vol. 4(1), pages 47-69, March.
    8. Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc.
    9. Wang, Ruqu & Weiss, Andrew, 1998. "Probation, layoffs, and wage-tenure profiles: A sorting explanation," Labour Economics, Elsevier, vol. 5(3), pages 359-383, September.
    10. 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.
    11. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
    12. Lutz Schneider, 2007. "Zu alt für einen Wechsel? Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1, Halle Institute for Economic Research.
    13. Michael Waldman, 1988. "Interpreting Evidence on Returns to Tenure: The Significance of Quasi-Specific Human Capital," UCLA Economics Working Papers 479, UCLA Department of Economics.
    14. 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.
    15. Carl Davidson & Stephen A. Woodbury, 2001. "From Social Experiment to Program," Book chapters authored by Upjohn Institute researchers, in: Philip K. Robins & Robert G. Spiegelman (ed.), Reemployment Bonuses in the Unemployment Insurance System: Evidence from Three Field Experiments, chapter 6, pages 175-222 W.E. Upjohn Institute for Employment Research.
    16. Ohkusa, Yasushi, 1995. "Testing for the matching hypothesis in Japanese manufacturing," Japan and the World Economy, Elsevier, vol. 7(2), pages 175-198, July.

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