IDEAS home Printed from https://ideas.repec.org/p/ifs/ifsewp/01-01.html
   My bibliography  Save this paper

Wages, experience and seniority

Author

Listed:
  • Christian Dustmann

    () (Institute for Fiscal Studies and University College London)

  • Costas Meghir

    () (Institute for Fiscal Studies and Yale University)

Abstract

In this paper we study the sources of wage growth. We identify the contribution to such growth of general, sector specific and firm specific human capital. Our results are interpretable within the context of a model where the returns to human capital may be heterogeneous and where firms may offer different combinations of entry level wages and firm specific human capital development. We allow for the the possibility that wages are match specific and that workers move jobs as a result of identifying a better match. To estimate the average returns to experience, sector tenure and firm specific tenure within this context, we develop an identification strategy which relies on the use of establishment closures. Our data source is a new and unique administrative data set for Germany that includes complete work histories as well as individual characteristics. We find positive returns to experience and tenure for skilled workers. The returns to experience and tenure for unskilled workers are substantially lower. Figure. Within and between firm and sector wage growth, by experience Figure. Within and between firm and sector wage growth, by experience

Suggested Citation

  • Christian Dustmann & Costas Meghir, 2001. "Wages, experience and seniority," IFS Working Papers W01/01, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:01/01
    as

    Download full text from publisher

    File URL: http://www.ifs.org.uk/wps/wp0101.pdf
    Download Restriction: no

    Other versions of this item:

    More about this item

    Keywords

    Training; labour market; wages;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ifs:ifsewp:01/01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emma Hyman). General contact details of provider: http://edirc.repec.org/data/ifsssuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.