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Individual Wage Growth: The Role of Industry Experience

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  • Michele Battisti

Abstract

type="main" xml:id="irel12125-abs-0001"> This paper focuses on the effect of experience within an industry on wages. I use a correlated random effects simultaneous equation model that allows individual and match heterogeneity to affect wages, job tenure, and industry experience. I estimate my model separately for men and women using a large panel of young Italian workers for the years 1986–2004. Results show that wage returns to industry experience are much higher than wage returns to job seniority. The hypotheses of exogeneity of job seniority and industry experience in the wage equation are rejected: high-wage workers and high-wage matches last longer.

Suggested Citation

  • Michele Battisti, 2016. "Individual Wage Growth: The Role of Industry Experience," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(1), pages 40-70, January.
    • Handle: RePEc:bla:indres:v:55:y:2016:i:1:p:40-70
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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