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Tenure-based Wage Setting

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Author Info

  • Hart, Robert A.

    ()
    (University of Stirling)

  • Ritchie, Felix

    (affiliation not available)

Abstract

We provide empirical support for the contention that within-job wage growth relates purely to job-specific performance and that returns to general experience are assessed at the point of job change. Using the British New Earnings Survey panel data we identify job changes that take place both within and between firms. We follow a cohort of 6778 male workers (born between 1958 and 1962) for the period 1975 to 1994 and estimate their within-job wage changes by allowing returns to vary over jobs. Between job changes are observed for individuals changing jobs in 1994. This work leads us to question the meaningfulness of attempts to separate returns to general and firm-specific human capital.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 47.

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Length: 23 pages
Date of creation: Jul 1999
Date of revision:
Handle: RePEc:iza:izadps:dp47

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Related research

Keywords: Tenure; experience; earnings; panel data;

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References

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  1. Christian Dustmann & Costas Meghir, 1999. "Wages, experience and seniority," IFS Working Papers, Institute for Fiscal Studies W99/01, Institute for Fiscal Studies.
  2. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(2), pages 202-29, April.
  3. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
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Cited by:
  1. Josef Zweim├╝ller & Rudolf Winter-Ebmer, 2000. "Firm-specific training: Consequences for job mobility," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2000-06, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Saint-Paul, Gilles, 2000. "Flexibility vs. Rigidity: Does Spain have the worst of both Worlds?," IZA Discussion Papers 144, Institute for the Study of Labor (IZA).
  3. Alison Booth & Mark L. Bryan, 2006. "Training, Minimum Wages and the Earnings Distribution," CEPR Discussion Papers, Centre for Economic Policy Research, Research School of Economics, Australian National University 537, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA).

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