Employer Learning, Job Changes, and Wage Dynamics
AbstractThis paper takes a new approach to testing whether employer learning is public or private. We show that public and private learning schemes make two distinct predictions about the curvature of wage growth paths when there is a job change, because the amount of information transferred to a new employer about workers' productivity is smaller in the private learning case than in the public learning case. This prediction enables us to account for individual and job-match heterogeneity, which was not possible in previous tests. Using the National Longitudinal Survey of Youth 1979 (NLSY79), we find that learning is primarily public.
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Bibliographic InfoPaper provided by University of Washington, Department of Economics in its series Working Papers with number UWEC-2012-01.
Date of creation: Mar 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-CTA-2012-04-17 (Contract Theory & Applications)
- NEP-LAB-2012-04-17 (Labour Economics)
- NEP-LMA-2012-04-17 (Labor Markets - Supply, Demand, & Wages)
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