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Seniority Rules and Productivity: An Empirical Test

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  • Blakemore, Arthur E
  • Hoffman, Dennis L

Abstract

The primary purpose of this paper is to test empirically the effect of labor quality on short-run manufacturing productivity. In doing so, the study makes major advances in two areas. For the first time, a job tenure function is estimated, and a time series of job tenure in manufacturing is developed. This estimated tenure series empirically verifies the use of seniority rules in the firm-worker employment relationship. Having generated a tenure series, the authors then test whether tenure enhances productivity in manufacturing. The results clearly indicate that seniority rules have a statistically significant positive impact on productivity, and the pattern of the seniority rules is reminiscent of a model where human capital has a specific component. Copyright 1989 by The London School of Economics and Political Science.

Suggested Citation

  • Blakemore, Arthur E & Hoffman, Dennis L, 1989. "Seniority Rules and Productivity: An Empirical Test," Economica, London School of Economics and Political Science, vol. 56(223), pages 359-371, August.
  • Handle: RePEc:bla:econom:v:56:y:1989:i:223:p:359-71
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    Cited by:

    1. Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomäki, 2004. "The Roles of Employer and Employee Characteristics for Plant Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 249-276, May.
    2. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002.
    3. Lee, Darin & Singer, Ethan, 2014. "What's your number? Interpreting the “fair and equitable” standard in seniority integration for airlines and other industries," Economics of Transportation, Elsevier, vol. 3(1), pages 2-15.
    4. Kronenberg, Kristin & Carree, Martin, 2010. "The effects of workforce composition, labor turnover, and the qualities of entering and exiting workers on productivity growth," MPRA Paper 25844, University Library of Munich, Germany.
    5. Mengistae, Taye, 1999. "The relative effects of skill formation and job matching on wage growth in Ethiopia," Policy Research Working Paper Series 2104, The World Bank.

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