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Job Match, Tenure and Wages Paid by Firms


  • Hersch, Joni
  • Reagan, Patricia


Using a new data set consisting of a matched sample of workers and firms, and including explicit measures of match quality, the authors estimate a structural model and find new evidence of a strong positive relation between wages and tenure. Inclusion of firm-fixed effects does not significantly reduce the estimated returns to tenure. The results also shed light on the relative importance of human capital and job matching theories. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Hersch, Joni & Reagan, Patricia, 1990. "Job Match, Tenure and Wages Paid by Firms," Economic Inquiry, Western Economic Association International, vol. 28(3), pages 488-507, July.
  • Handle: RePEc:oup:ecinqu:v:28:y:1990:i:3:p:488-507

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    References listed on IDEAS

    1. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324 Elsevier.
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    Cited by:

    1. Hashida, Emiko & Perloff, Jeffrey M, 1996. "The effects of work histories on agricultural wages," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6md2g0z1, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Schneider, Lutz, 2007. "Zu alt für einen Wechsel? Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1/2007, Halle Institute for Economic Research (IWH).
    3. Thomas Cornelißen & Olaf Hübler, 2011. "Unobserved Individual and Firm Heterogeneity in Wage and Job‐Duration Functions: Evidence from German Linked Employer–Employee Data," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 469-489, November.
    4. Brunello, Giorgio & Ariga, Kenn, 1997. "Earnings and seniority in Japan: A re-appraisal of the existing evidence and a comparison with the UK," Labour Economics, Elsevier, vol. 4(1), pages 47-69, March.
    5. Cappelli, Peter, 2004. "Why do employers pay for college?," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 213-241.
    6. Marta Silva & Luis Filipe Martins & Helena Lopes, 2015. "Asymmetric labour market reforms and wage growth with fixed-term contracts: does learning about match quality matter?," Working Papers Series 2 15-04, ISCTE-IUL, Business Research Unit (BRU-IUL).

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