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Wage Returns to Experience and Tenure for Young Men in Italy

  • G. Sulis

    ()

This paper provides estimates of wage returns to experience, firm, sector and occupation specific tenure for a sample of young Italian male workers. By comparing returns obtained using different estimators, I evaluate the importance of endogeneity and selection problems generated by specific unobserved components and individual fixed effects. After controlling for the role of collective bargaining agreements and occupation categories, results indicate that general labour market experience is the fundamental source of wage growth for blue and white collars, while returns to firm tenure are insignificant. There is some evidence of positive returns to sector and occupational tenure for white collars. Estimates from different sectors suggest that union coverage can be relevant in offsetting the role of search and matching in wage determination.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200903.

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Date of creation: 2009
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Handle: RePEc:cns:cnscwp:200903
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  1. Teulings,Coen & Hartog,Joop, 1998. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521590730.
  2. Joseph Altonji & R. Shakotko, 1985. "Do Wages Rise with Job Seniority?," Working Papers 567, Princeton University, Department of Economics, Industrial Relations Section..
  3. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  4. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  5. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  6. Christian Dustmann & Sonia C. Pereira, 2008. "Wage Growth and Job Mobility in the United Kingdom and Germany," ILR Review, Cornell University, ILR School, vol. 61(3), pages 374-393, April.
  7. Alexandros Zangelidis, 2004. "Seniority Profiles In Unionised Workplaces: Do Unions Still Have The Edge?," Royal Economic Society Annual Conference 2004 48, Royal Economic Society.
  8. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-23, April.
  9. repec:inr:wpaper:155908 is not listed on IDEAS
  10. Magali Beffy & Moshe Buchinsky & Denis Fougère & Thierry Kamionka & Francis Kramarz, 2006. "The Returns to Seniority in France (and Why are They Lower than in the United States ?)," Working Papers 2006-05, Centre de Recherche en Economie et Statistique.
  11. Nicolas Williams, 2004. "Seniority, Experience, and Wages in the UK," University of Cincinnati, Economics Working Papers Series 2004-06, University of Cincinnati, Department of Economics.
  12. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
  13. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  14. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
  15. Cingano, Federico, 2003. "Returns to specific skills in industrial districts," Labour Economics, Elsevier, vol. 10(2), pages 149-164, April.
  16. Iourii Manovskii & Gueorgui Kambourov, 2004. "Occupational Specificity of Human Capital," 2004 Meeting Papers 197, Society for Economic Dynamics.
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