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The changing pattern of wage growth for low skilled workers

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  • Eric French
  • Bhashkar Mazumder
  • Christopher Taber

Abstract

We examine the key components that determine an individual's early career wage growth and how these factors have changed for less skilled workers over the last twenty years. In particular, we examine the relative importance of accumulating work experience as compared to the quality of job matches in influencing wage growth. Our main finding is that over this period, the vast majority of the variation in wage growth is due to variability in the return to experience.

Suggested Citation

  • Eric French & Bhashkar Mazumder & Christopher Taber, 2005. "The changing pattern of wage growth for low skilled workers," Working Paper Series WP-05-24, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:wp-05-24
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    Cited by:

    1. Tricia Gladden & Christopher Taber, 2009. "The relationship between wage growth and wage levels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 914-932.
    2. Kenneth L. Sørensen & Rune Vejlin, 2014. "Return To Experience And Initial Wage Level: Do Low Wage Workers Catch Up?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(6), pages 984-1006, September.
    3. Robert LaLonde & Daniel Sullivan, 2010. "Vocational Training," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 323-349, National Bureau of Economic Research, Inc.
    4. Daniel Aaronson & Sumit Agarwal & Eric French, 2008. "The consumption response to minimum wage increases," Working Paper Series WP-07-23, Federal Reserve Bank of Chicago.

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    Keywords

    Wages; Displaced workers;

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