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Wage Returns to Experience and Tenure for Young Men in Italy

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  • G. Sulis

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Abstract

This paper provides estimates of wage returns to experience, firm, sector and occupation specific tenure for a sample of young Italian male workers. By comparing returns obtained using different estimators, I evaluate the importance of endogeneity and selection problems generated by specific unobserved components and individual fixed effects. After controlling for the role of collective bargaining agreements and occupation categories, results indicate that general labour market experience is the fundamental source of wage growth for blue and white collars, while returns to firm tenure are insignificant. There is some evidence of positive returns to sector and occupational tenure for white collars. Estimates from different sectors suggest that union coverage can be relevant in offsetting the role of search and matching in wage determination.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200903.

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Date of creation: 2009
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Handle: RePEc:cns:cnscwp:200903

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Keywords: unions; endogeneity; search; skills; wages; italy;

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  1. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
  2. Alexandros Zangelidis, 2004. "Seniority Profiles In Unionised Workplaces: Do Unions Still Have The Edge?," Royal Economic Society Annual Conference 2004 48, Royal Economic Society.
  3. Magali Beffy & Moshe Buchinsky & Denis Fougère & Thierry Kamionka & Francis Kramarz, 2006. "The Returns to Seniority in France (and Why are They Lower than in the United States ?)," Working Papers 2006-05, Centre de Recherche en Economie et Statistique.
  4. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  5. Teulings,Coen & Hartog,Joop, 1998. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521590730, October.
  6. Christian Dustmann & Sonia C. Pereira, 2008. "Wage Growth and Job Mobility in the United Kingdom and Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(3), pages 374-393, April.
  7. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-23, April.
  8. Postel-Vinay & Robin, 2002. "Equilibrium wage dispersion with worker and employer heterogeneity," Working Papers 155908, Institut National de la Recherche Agronomique, France.
  9. Iourii Manovskii & Gueorgui Kambourov, 2004. "Occupational Specificity of Human Capital," 2004 Meeting Papers 197, Society for Economic Dynamics.
  10. Cingano, Federico, 2003. "Returns to specific skills in industrial districts," Labour Economics, Elsevier, vol. 10(2), pages 149-164, April.
  11. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
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