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Wage Returns to Experience and Tenure for Young Men in Italy

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  • Giovanni Sulis

Abstract

This paper provides estimates of the average returns to labour market experience and .rm-speci.c tenure for a sample of young Italian male workers. Using instrumental variables, I take into account endogeneity and selection problems generated by job matching and individual fixed effects. Results indicate that OLS estimates for experience and tenure are downward biased and that white collars workers enjoy higher returns to general and specific skills than blue collars.

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Bibliographic Info

Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 189.

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Length: 27
Date of creation: 25 May 2009
Date of revision:
Handle: RePEc:edn:esedps:189

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Keywords: Wages; Experience; Tenure; Search; Endogeneity; Italy;

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  1. Altonji, Joseph G & Shakotko, Robert A, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 437-59, July.
  2. Iourii Manovskii & Gueorgui Kambourov, 2004. "Occupational Specificity of Human Capital," 2004 Meeting Papers 197, Society for Economic Dynamics.
  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. Robert H. Topel & Michael P. Ward, 1988. "Job Mobility and the Careers of Young Men," NBER Working Papers 2649, National Bureau of Economic Research, Inc.
  5. Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
  6. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  7. Teulings,Coen & Hartog,Joop, 1998. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521590730.
  8. Cingano, Federico, 2003. "Returns to specific skills in industrial districts," Labour Economics, Elsevier, vol. 10(2), pages 149-164, April.
  9. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  10. 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.
  11. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
  12. Alexandros Zangelidis, 2004. "Seniority Profiles In Unionised Workplaces: Do Unions Still Have The Edge?," Royal Economic Society Annual Conference 2004 48, Royal Economic Society.
  13. 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.
  14. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
  15. 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.
  16. 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.
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