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The Effect of Match Quality and Specific Experience on Career Decisions and Wage Growth

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  • Shintaro Yamaguchi

Abstract

This paper constructs and estimates a career decision model where individuals search for both career matching and employer matching to understand wage growth and career mobility using the NLSY79. It departs from previous papers in that career mobility decisions and participation decisions are explicitly modeled. I find substantial returns to career-specific experience. However, college graduates’ wage grows little through career-match upgrading, which results in a lower incidence of career changes than high school graduates. The finding suggests that college graduates learn about their suitable careers before they enter a labor market.

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File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2007-01.pdf
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Bibliographic Info

Paper provided by McMaster University in its series Department of Economics Working Papers with number 2007-01.

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Length: 35 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:mcm:deptwp:2007-01

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Keywords: Specific Human Capital; Occupational Choice; Matching;

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References

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  1. 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, University of Chicago Press, vol. 18(2), pages 306-23, April.
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  10. Shintaro Yamaguchi, 2008. "Career Progression and Comparative Advantage," Department of Economics Working Papers 2008-03, McMaster University.
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  17. Rubinstein, Yona & Weiss, Yoram, 2006. "Post Schooling Wage Growth: Investment, Search and Learning," Handbook of the Economics of Education, Elsevier, Elsevier.
  18. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(4), pages 653-77, October.
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  24. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 105(3), pages 473-522, June.
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Cited by:
  1. Shintaro Yamaguchi, 2009. "Career Progression and Comparative Advantage," Global COE Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University gd08-025, Institute of Economic Research, Hitotsubashi University.
  2. Daniel van Vuuren & Paul de Hek, 2010. "Are older workers overpaid? A literature review," CPB Discussion Paper, CPB Netherlands Bureau for Economic Policy Analysis 165, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Kawaguchi, Daiji & Murao, Tetsushi, 2014. "Labor Market Institutions and Long-Term Effects of Youth Unemployment," IZA Discussion Papers 8156, Institute for the Study of Labor (IZA).

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