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Cohort Effects and Returns to Seniority in France

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  • David N. Margolis

Abstract

We examine empirically returns to seniority in France and estimate cohort effects in both firm specific compensation policies and returns to job seniority. We demonstrate the biases in several estimators of returns to seniority and show that allowing firm specific compensation policies and returns to seniority to vary by entry cohort uncovers patterns of variance within firm and within cohort in estimated intercepts and slopes that can be explained by no single theory. Nous examinons les rendements d'ancienneté en France et nous estimons les effets de cohorte, à la fois dans la politique de rémunération de l'entreprise et dans son rendement d'ancienneté. Nous soulignons les biais présents dans plusieurs estimateurs de rendement d'ancienneté et nous montrons que la flexibilité introduite par l'estimation des effets de cohorte nous permet de découvrir des variations à travers les cohortes et à travers les entreprises qui ne sont pas cohérentes avec aucune des théories de rémunération trouvées dans la littérature.

Suggested Citation

  • David N. Margolis, 1995. "Cohort Effects and Returns to Seniority in France," CIRANO Working Papers 95s-46, CIRANO.
    • Handle: RePEc:cir:cirwor:95s-46
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    References listed on IDEAS

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    1. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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    Cited by:

    1. David Margolis, 2006. "Should employment authorities worry about mergers and acquisitions?," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(2), pages 167-194, August.
    2. 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.
    3. Marc Gurgand & David Margolis, 2005. "Does work pay in France? Monetary incentives and the guaranteed minimum income," Post-Print halshs-00193282, HAL.
    4. Maurin, Eric & Givord, Pauline, 2003. "Job Tenure, Wages and Technology: A Reassessment Using Matched Worker-Firm Panel Data," CEPR Discussion Papers 4147, C.E.P.R. Discussion Papers.
    5. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.
    6. Zwick, Thomas, 2009. "Why Pay Seniority Wages?," ZEW Discussion Papers 09-005, ZEW - Leibniz Centre for European Economic Research.
    7. David MARGOLIS, 2008. "Unemployment Insurance Versus Individual Unemployment Accounts and Transitions to Formal Versus Informal Sector Jobs," Working Papers 2008-35, Center for Research in Economics and Statistics.
    8. Williams, Nicolas, 2009. "Seniority, experience, and wages in the UK," Labour Economics, Elsevier, vol. 16(3), pages 272-283, June.
    9. repec:eee:labchp:v:3:y:1999:i:pb:p:2439-2483 is not listed on IDEAS
    10. Marc Gurgand & David Margolis, 2001. "RMI et revenus du travail : une évaluation des gains financiers à l'emploi," Économie et Statistique, Programme National Persée, vol. 346(1), pages 103-122.
    11. repec:eee:labchp:v:3:y:1999:i:pb:p:2629-2710 is not listed on IDEAS
    12. Amigues, Jean-Pierre & Favard, Pascal & Gaudet, Gerard & Moreaux, Michel, 1998. "On the Optimal Order of Natural Resource Use When the Capacity of the Inexhaustible Substitute Is Limited," Journal of Economic Theory, Elsevier, vol. 80(1), pages 153-170, May.
    13. Sabrina Di Addario & Patrick Kline & Raffaele Saggio & Mikkel Soelvsten, 2022. "It ain't where you're from it's where you're at: firm effects, state dependence, and the gender wage gap," Temi di discussione (Economic working papers) 1374, Bank of Italy, Economic Research and International Relations Area.
    14. Dachraoui, K. & Dionne, G., 1999. "Capital Structure and Compensation Policies," Ecole des Hautes Etudes Commerciales de Montreal- 99-03, Ecole des Hautes Etudes Commerciales de Montreal-Chaire de gestion des risques..
    15. Diego Daruich & Sabrina Di Addario & Raffaele Saggio, 2023. "The Effects of Partial Employment Protection Reforms: Evidence from Italy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2880-2942.
    16. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
    17. Marc Gurgand & David Margolis, 2004. "Does Work Pay in France ? Monetary Incentives and and the Guaranteed Minimum Income," Working Papers 2004-34, Center for Research in Economics and Statistics.
    18. Stephen Bazen, 2001. "Youth and Earnings Mobility: the Case of France in a comparative Framework," LoWER Working Papers wp3, AIAS, Amsterdam Institute for Advanced Labour Studies.
    19. Torbjørn Hægeland, 2001. "Experience and Schooling: Substitutes or Complements?," Discussion Papers 301, Statistics Norway, Research Department.

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