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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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File URL: http://ftp.iza.org/dp47.pdf
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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. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
  2. Dustmann, Christian & Meghir, Costas, 1999. "Wages, Experience and Seniority," CEPR Discussion Papers 2077, C.E.P.R. Discussion Papers.
  3. repec:bla:restud:v:72:y:2005:i:1:p:77-108 is not listed on IDEAS
  4. 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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Citations

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Cited by:
  1. Josef Zweimüller & Rudolf Winter-Ebmer, 2000. "Firm-specific training: Consequences for job mobility," Economics working papers 2000-06, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Gilles Saint Paul, 2000. "Flexibility vs. rigidity: Does Spain have the worst of both worlds?," Economics Working Papers 450, Department of Economics and Business, Universitat Pompeu Fabra.
  3. 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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