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Differences in On-the-Job Learning across Firms

Author

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  • Jaime Arellano-Bover

    (Yale University/IZA/CESifo)

  • Fernando Saltiel

    (McGill University/IZA)

Abstract

We present evidence that is consistent with large disparities across firms in their onthe-job learning opportunities, using administrative datasets from Brazil and Italy. Wecategorize firms into discrete “classes”—which our conceptual framework interprets asskill-learning classes—using a clustering methodology that groups together firms withsimilar distributions of unexplained wage growth. Mincerian returns to experience varywidely across experiences acquired in different firm classes. Four tests leveraging firmstayers and movers, occupation and industry switchers, hiring wages, and displacedworkers point towards a portable and general human capital interpretation. Heterogeneousemployment experiences explain an important share of wage variance by age 35,thus contributing to shape wage inequality. Firms’ observable attributes only mildlypredict on-the-job learning opportunities.

Suggested Citation

  • Jaime Arellano-Bover & Fernando Saltiel, 2024. "Differences in On-the-Job Learning across Firms," Working Papers 317, Red Nacional de Investigadores en Economía (RedNIE).
  • Handle: RePEc:aoz:wpaper:317
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    1. Ma, Xiao & Muendler, Marc-Andreas & Nakab, Alejandro, 2020. "Learning by Exporting and Wage Profiles: New Evidence from Brazil," MPRA Paper 109497, University Library of Munich, Germany, revised 31 Aug 2021.
    2. Ostrizek, Franz & Sartori, Elia, 2023. "Screening while controlling an externality," Games and Economic Behavior, Elsevier, vol. 139(C), pages 26-55.
    3. Arellano-Bover, Jaime & San, Shmuel, 2023. "The Role of Firms and Job Mobility in the Assimilation of Immigrants: Former Soviet Union Jews in Israel 1990–2019," IZA Discussion Papers 16389, Institute of Labor Economics (IZA).
    4. Pedro Portugal & John T. Addison, 2022. "Retrieving the Returns to Experience, Tenure, and Job Mobility from Work Histories," Working Papers w202221, Banco de Portugal, Economics and Research Department.
    5. Jose Garcia-Louzao & Gabriel Burdin, 2023. "Employee Owned Firms and the Careers of Young Workers," Bank of Lithuania Working Paper Series 113, Bank of Lithuania.
    6. Garcia-Louzao, Jose & Hospido, Laura & Ruggieri, Alessandro, 2023. "Dual returns to experience," Labour Economics, Elsevier, vol. 80(C).
    7. Di Addario, Sabrina & Kline, Patrick & Saggio, Raffaele & Sølvsten, Mikkel, 2023. "It ain’t where you’re from, it’s where you’re at: Hiring origins, firm heterogeneity, and wages," Journal of Econometrics, Elsevier, vol. 233(2), pages 340-374.

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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