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The Effect of Job Tenure on Wage Offers

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Author Info
Marshall, Robert C
Zarkin, Gary A
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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Publisher 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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  1. Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Lutz Schneider, 2007. "Zu alt für einen Wechsel? : Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1-07, Halle Institute for Economic Research. [Downloadable!]
  3. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!]
  6. Daniel Parent, 1995. "Matching, Human Capital, and the Covariance Structure of Earnings," CIRANO Working Papers 95s-25, CIRANO. [Downloadable!]
    Other versions:
  7. 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. [Downloadable!]
  8. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Laura Hospido, 2009. "Job changes and individual-job specific wage dynamics," Banco de España Working Papers 0907, Banco de España. [Downloadable!]
  10. Joseph G. Altonji & Nicolas Williams, 1992. "The Effectsof Labor Market Experience, Job Seniority, and Job Mobility on Wage Growth," NBER Working Papers 4133, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. 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. [Downloadable!]
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