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Experience and Schooling: Substitutes or Complements?

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Author Info
Torbjørn Hægeland () (Statistics Norway)

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Abstract

This paper investigates whether returns to experience and seniority vary between workers with different levels of education and between different types of firms. Using a large administrative dataset for Norwegian manufacturing, I find that more educated workers have higher experience and seniority premiums, indicating that they accumulate more human capital (both general and firm-specific) than workers with less education. Firm characteristics are also found to be important for experience and seniority premiums. Indicators of technological change seem to be more important for returns to experience and seniority than indicators of technological level. The results suggest that workers learn from their colleagues, and that they learn the skills that their colleagues possess.

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Publisher Info
Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 301.

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Date of creation: Jun 2001
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Handle: RePEc:ssb:dispap:301

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Related research
Keywords: Wages; experience; seniority; firm and worker characteristics; linked employer-employee data.;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

References listed on IDEAS
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  1. Klette, T.J., 1998. "Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data," Memorandum 15/1998, Oslo University, Department of Economics.
    Other versions:
  2. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO. [Downloadable!]
    Other versions:
  3. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier. [Downloadable!] (restricted)
  4. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May. [Downloadable!] (restricted)
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  5. 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)
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  6. Steven J. Davis & John Haltiwanger, 1995. "Employer Size and The Wage Structure in U.S. Manufacturing," NBER Working Papers 5393, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Barth, Erling, 1997. "Firm-Specific Seniority and Wages," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 495-506, July. [Downloadable!] (restricted)
  8. Torbjørn Hægeland and Tor Jakob Klette, 1997. "Do Higher Wages Reflect Higher Productivity? Education, Gender and Experience Premiums in a Matched Plant-Worker Data Set," Discussion Papers 208, Research Department of Statistics Norway.
    Other versions:
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