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Worth Waiting For? Delayed Compensation, Training and Turnover in the United States and Japan

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  • Levine, David I.

Abstract

This paper utilizes a rich data set on workers and their employers in the US and Japan to test several predictions of human capital theory. The data set incorporates both prospective and retrospective measures of turnover, includes multiple measures of training, and provides a basis for calculating plant-specific returns to tenure. Contrary to human capital theory, there is no evidence that establishments with high levels of training have either high returns to tenure or low levels of turnover. Surprisingly, establishments with high returns to tenure do not have low levels of turnover.

Suggested Citation

  • Levine, David I., 1991. "Worth Waiting For? Delayed Compensation, Training and Turnover in the United States and Japan," Institute for Research on Labor and Employment, Working Paper Series qt97m9v25n, Institute of Industrial Relations, UC Berkeley.
  • Handle: RePEc:cdl:indrel:qt97m9v25n
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    References listed on IDEAS

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    1. Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
    2. Katrin Breuer & Patrick Kampkoetter, 2012. "Do Employees Reciprocate to Intra-Firm Trainings? An Analysis of Absenteeism and Turnover Rates," Cologne Graduate School Working Paper Series 03-09, Cologne Graduate School in Management, Economics and Social Sciences.
    3. Vilalta-Bufi, Montserrat, 2010. "On the industry experience premium and labor mobility," Labour Economics, Elsevier, vol. 17(3), pages 547-555, June.
    4. Gander, James P., 2003. "Technology adoption and labor training under uncertainty," Economics of Education Review, Elsevier, vol. 22(3), pages 285-289, June.
    5. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
    6. Maite Blázquez Cuesta & Wiemer Salverda, 2009. "Low-wage Employment and the Role of Education and On-the-job Training," LABOUR, CEIS, vol. 23(s1), pages 5-35, March.
    7. Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Güell, Maia, 2004. "Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data," IZA Discussion Papers 1321, Institute for the Study of Labor (IZA).
    8. Statt, A.L., 1998. "Training and Displacement: is Employer Paid Training Firm-Specific?," Working Papers Series 9801, University of Stirling, Division of Economics.
    9. Barth, Erling, 1997. "Firm-Specific Seniority and Wages," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 495-506, July.
    10. Ando, Munetomo & Kobayashi, Hajime, 2008. "Intergenerational conflicts of interest and seniority systems in organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 757-767, March.
    11. Statt, A.L., 1998. "Great Prospects: Employer Provided Training as a Credible Screening Device," Working Papers Series 9802, University of Stirling, Division of Economics.
    12. C Green & J S Heywood, 2007. "Does profit sharing increase training by reducing turnover?," Working Papers 589032, Lancaster University Management School, Economics Department.
    13. Scoones, David, 2000. "Matching and competition for human capital," Labour Economics, Elsevier, vol. 7(2), pages 135-152, March.
    14. BLÁZQUEZ CUESTA, Maite & RAMOS RODRIGO, José, 2008. "Recent Investments in Human Capital and its Effect on the Chances of Escaping from Low-paid Jobs: The Spanish Case," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 26, pages 161-180, Agosto.
    15. Lindner, Axel, 1998. "Modelling the German system of vocational education," Labour Economics, Elsevier, vol. 5(4), pages 411-423, December.
    16. Kenneth A. Counch, 2003. "Job Matching and Wage Growth in the U.S. and Germany," Working papers 2003-10, University of Connecticut, Department of Economics.
    17. Barron, John M & Berger, Mark C & Black, Dan A, 1997. "How Well Do We Measure Training?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 507-528, July.
    18. Scoones, David & Bernhardt, Dan, 1998. "Promotion, Turnover, and Discretionary Human Capital Acquisition," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 122-141, January.

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    Keywords

    Levine; compensation; training; turnover; United States; Japan;

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