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Job Matching and Wage Growth in the U.S. and Germany

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  • Kenneth A. Counch

    (University of Connecticut)

Abstract

This paper examines the contribution of job matching to wage growth in the U.S. and Germany using data drawn from the Panel Study of Income Dynamics and the German Socio-Economic Panel from 1984 through 1992. Using a symmetrical set of variables and data handling procedures, real wage growth is found to be higher in the U.S. than in Germany during this period. Also, using two different estimators, job matches are found to enhance wage growth in the U.S. and retard it in Germany. The relationship of general skills to employment in each country appears responsible for this result.

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File URL: http://www.econ.uconn.edu/working/2003-10.pdf
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Bibliographic Info

Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2003-10.

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Length: 32 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:uct:uconnp:2003-10

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Postal: University of Connecticut 341 Mansfield Road, Unit 1063 Storrs, CT 06269-1063
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Web page: http://www.econ.uconn.edu/
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References

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  7. Gerard A. Pfann & Daniel S. Hamermesh, 2000. "Two-Sided Learning, Labor Turnover, and Worker Displacement," Working Papers 0021, Harris School of Public Policy Studies, University of Chicago.
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  15. Hessel Oosterbeek & Edwin Leuven, 2001. "Firm-Specific Human Capital as a Shared Investment: Comment," American Economic Review, American Economic Association, vol. 91(1), pages 342-347, March.
  16. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
  17. Masanori Hashimoto, 2001. "Firm-Specific Human Capital as a Shared Investment: Reply," American Economic Review, American Economic Association, vol. 91(1), pages 348-349, March.
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  21. Levine, David I, 1993. "Worth Waiting For? Delayed Compensation, Training, and Turnover in the United States and Japan," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 724-52, October.
  22. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  23. Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June.
  24. Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993.
  25. Ruhm, Christopher J, 1990. "Do Earnings Increase with Job Seniority?," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 143-47, February.
  26. 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.
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