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Cohort Effects and Returns to Seniority in France

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Author Info
David N. Margolis

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Abstract

We examine empirically returns to seniority in France and estimate cohort effects in both firm specific compensation policies and returns to job seniority. We demonstrate the biases in several estimators of returns to seniority and show that allowing firm specific compensation policies and returns to seniority to vary by entry cohort uncovers patterns of variance within firm and within cohort in estimated intercepts and slopes that can be explained by no single theory.

Nous examinons les rendements d'ancienneté en France et nous estimons les effets de cohorte, à la fois dans la politique de rémunération de l'entreprise et dans son rendement d'ancienneté. Nous soulignons les biais présents dans plusieurs estimateurs de rendement d'ancienneté et nous montrons que la flexibilité introduite par l'estimation des effets de cohorte nous permet de découvrir des variations à travers les cohortes et à travers les entreprises qui ne sont pas cohérentes avec aucune des théories de rémunération trouvées dans la littérature.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 95s-46.

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Date of creation: 01 Nov 1995
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Handle: RePEc:cir:cirwor:95s-46

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Related research
Keywords: Returns to Seniority Worker Heterogeneity Firm Heterogeneity Cohort Effects rendement d'ancienneté hétérogénéité des travailleurs hétérogénéité des entreprises effets de cohort

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-88, August. [Downloadable!] (restricted)
  2. MacLeod, W Bentley & Malcomson, James M, 1988. "Reputation and Hierarchy in Dynamic Models of Employment," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 832-54, August. [Downloadable!] (restricted)
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  3. Katharine G. Abraham & Henry S. Farber, 1987. "Job Duration, Seniority, and Earnings," NBER Working Papers 1819, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Salop, Joanne & Salop, Steven, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 619-27, November. [Downloadable!] (restricted)
  5. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Altonji, Joseph G & Shakotko, Robert A, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 437-59, July. [Downloadable!] (restricted)
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  7. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
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  8. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February. [Downloadable!] (restricted)
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  9. Milton Harris & Bengt Holmstrom, 1981. "A Theory of Wage Dynamics," Discussion Papers 488, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gurgand, Marc & Margolis, David N., 2005. "Does Work Pay in France? Monetary Incentives and the Guaranteed Minimum Income," IZA Discussion Papers 1467, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Givord, Pauline & Maurin, Eric, 2003. "Job Tenure, Wages and Technology: A Reassessment Using Matched Worker-Firm Panel Data," CEPR Discussion Papers 4147, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. David N. Margolis, 2006. "Should Employment Authorities Worry About Mergers and Acquisitions?," IZA Discussion Papers 1994, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. 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!]
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