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Self-Selection and Wage-Tenure Profiles for Heterogeneous Labor

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Author Info
Roland Amann () (Department of Economics, University of Konstanz)
Abstract

In this paper I develop a theoretical model explaining optimal wage-tenure profiles for heterogeneous labor. My findings entail that high productive people have steeper profiles than low productive individuals. I find strong empirical evidence for these findings. At the end of my paper, I utilize the basic model to describe the labor market entry of college graduates.

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Publisher Info
Paper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 04-16.

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Length: 21 pages
Date of creation: 16 Sep 2004
Date of revision:
Handle: RePEc:knz:hetero:0416

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Postal: D-78457 Konstanz
Phone: +49 7531 88 2314
Web page: http://www.uni-konstanz.de/forschergruppewiwi
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Related research
Keywords: wages ; seniority ; educational decisions;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

References listed on IDEAS
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  1. Blackaby, D H & Murphy, P D & O'Leary, N C, 1999. "Graduate Earnings in Great Britain: A Matter of Degree?," Applied Economics Letters, Taylor and Francis Journals, vol. 6(5), pages 311-15, May. [Downloadable!] (restricted)
  2. Edward P. Lazear & Sherwin Rosen, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Naylor, Robin & Smith, Jeremy & McKnight, Abigail, 2002. "Why Is There a Graduate Earnings Premium for Students from Independent Schools?," Bulletin of Economic Research, Blackwell Publishing, vol. 54(4), pages 315-39, October.
  4. Katharine G. Abraham & Henry S. Farber, 1987. "Job Duration, Seniority, and Earnings," NBER Working Papers 1819, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September. [Downloadable!] (restricted)
  6. Christian Dustmann & Costas Meghir, 2001. "Wages, experience and seniority," IFS Working Papers W01/01, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  7. Salop, Joanne & Salop, Steven, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 619-27, November. [Downloadable!] (restricted)
  8. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February. [Downloadable!] (restricted)
  9. Frank, Robert H. & Hutchens, Robert M., 1993. "Wages, seniority, and the demand for rising consumption profiles," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 251-276, August. [Downloadable!] (restricted)
  10. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Altonji, Joseph G & Shakotko, Robert A, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 437-59, July. [Downloadable!] (restricted)
    Other versions:
  12. 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. [Downloadable!] (restricted)
    Other versions:
  13. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February. [Downloadable!] (restricted)
    Other versions:
  14. Cornelia Luchsinger & Rafael Lalive & Jörg Wild, 2003. "Do Wages Rise with Job Seniority? The Swiss Case," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(II), pages 207-229, June. [Downloadable!]
  15. Guasch, J Luis & Weiss, Andrew, 1981. "Self-Selection in the Labor Market," American Economic Review, American Economic Association, vol. 71(3), pages 275-84, June. [Downloadable!] (restricted)
  16. Smith Freeman, 1977. "Wage Trends as Performance Displays Productive Potential: A Model and Application to Academic Early Retirement," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 419-443, Autumn. [Downloadable!] (restricted)
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