Tenure and Wages in Kansan Labor Markets, 1899

The focus of the paper is on the link between tenure and wages in association with the functioning of internal labor markets in the U.S. at the turn of the century. The paper finds that wage determination mechanism was different across occupational groups. Wages of those who had long-term labor relations were higher and probably determined under the rule of internal labor markets. Wages of those who had short jobs were lower and their determination mechanism worked more like a spot labor market. The wage differentials across occupa-tional groups appear to have been in part due to efficiency wage scheme. Although compensating wage schemes did not explain wage differentials across occupation groups well, there was some evidence of compensating wage schemes within occupational groups. Unions played a certain role in raising wages, but they did not alter their members' profile of long-term wage arrangements.