Job Spells, Employer Spells, and Wage Returns to Tenure
AbstractWe show that the distinction between job spells and employer spells matters for returns to tenure. Employer spells encompass between-job wage movements linked to promotions or demotions while job spells don't. Using a 1% sample of the British workforce over the period 1975-2010, we find that a significant proportion of the return to employer tenure arises due to job changes within employer spells. Conditional on tenure with employer, the return to job tenure is negative. This suggests that any positive effects of job-specific human capital on wage growth within jobs are outweighed by the effects of job changes within firms.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7384.
Length: 31 pages
Date of creation: May 2013
Date of revision:
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Other versions of this item:
- Devereux, Paul J & Hart, Robert A & Roberts, J Elizabeth, 2013. "Job spells, employer spells, and wage returns to tenure," Stirling Economics Discussion Papers 2013-01, University of Stirling, Division of Economics.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-19 (All new papers)
- NEP-EUR-2013-05-19 (Microeconomic European Issues)
- NEP-HRM-2013-05-19 (Human Capital & Human Resource Management)
- NEP-LAB-2013-05-19 (Labour Economics)
- NEP-LMA-2013-05-19 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-05-19 (Unemployment, Inequality & Poverty)
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