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Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics

Listed author(s):
  • Jesper Bagger

    (RHUL - Royal Holloway [University of London])

  • François Fontaine

    (BETA - Bureau d'Economie Théorique et Appliquée - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - UL - Université de Lorraine, CREST - Centre de Recherche en Économie et Statistique - INSEE - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Fabien Postel-Vinay

    (Department of Economics - UCL - University College of London [London], ECON - Département d'économie - Sciences Po)

  • Jean-Marc Robin

    ()

    (ECON - Département d'économie - Sciences Po)

We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity and individual-level shocks. Wage growth is decomposed into contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers. The contribution from job search to wage growth, both within- and between-job, declines over the fi rst ten years of a career – the ‘job-shopping’ phase of a working life – after which workers settle into high-quality jobs using outside o ffers to generate gradual wage increases, thus reaping the bene fits from competition between employers.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-01301431.

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Length:
Date of creation: Jun 2014
Publication status: Published in American Economic Review, American Economic Association, 2014, 104 (6), pp.1551-1596. 〈10.1257/aer.104.6.1551〉
Handle: RePEc:hal:cesptp:hal-01301431
DOI: 10.1257/aer.104.6.1551
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01301431
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

References listed on IDEAS
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