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Self-Selection and Wage-Tenure Profiles for Heterogeneous Labor

  • Roland Amann

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    (Department of Economics, University of Konstanz)

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    In this paper I develop a theoretical model explaining optimal wage-tenure profiles for heterogeneous labor. My findings entail that high productive people have steeper profiles than low productive individuals. I find strong empirical evidence for these findings. At the end of my paper, I utilize the basic model to describe the labor market entry of college graduates.

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    File URL: http://w3.ub.uni-konstanz.de/v13/volltexte/2004/1338//pdf/04-16.pdf
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    Paper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 04-16.

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    Length: 21 pages
    Date of creation: 16 Sep 2004
    Date of revision:
    Handle: RePEc:knz:hetero:0416
    Contact details of provider: Postal: D-78457 Konstanz
    Phone: +49 7531 88 2314
    Fax: +49-7531-88-2145
    Web page: http://www.uni-konstanz.de/forschergruppewiwi

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    1. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
    2. Edward P. Lazear & Sherwin Rosen, 1979. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc.
    3. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February.
    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. D. H. Blackaby & P. D. Murphy & N. C. O'Leary, 1999. "Graduate earnings in Great Britain: a matter of degree?," Applied Economics Letters, Taylor & Francis Journals, vol. 6(5), pages 311-315.
    6. Dustmann, Christian & Meghir, Costas, 1999. "Wages, Experience and Seniority," CEPR Discussion Papers 2077, C.E.P.R. Discussion Papers.
    7. Joseph Altonji & R. Shakotko, 1985. "Do Wages Rise with Job Seniority?," Working Papers 567, Princeton University, Department of Economics, Industrial Relations Section..
    8. Guasch, J Luis & Weiss, Andrew, 1981. "Self-Selection in the Labor Market," American Economic Review, American Economic Association, vol. 71(3), pages 275-84, June.
    9. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
    10. Abraham, Katharine G & Farber, Henry S, 1987. "Job Duration, Seniority, and Earnings," American Economic Review, American Economic Association, vol. 77(3), pages 278-97, June.
    11. Frank, Robert H. & Hutchens, Robert M., 1993. "Wages, seniority, and the demand for rising consumption profiles," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 251-276, August.
    12. Salop, Joanne & Salop, Steven, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 619-27, November.
    13. Naylor, Robin & Smith, Jeremy & McKnight, Abigail, 2002. "Why Is There a Graduate Earnings Premium for Students from Independent Schools?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 315-39, October.
    14. Cornelia Luchsinger & Jörg Wild & Rafael Lalive, 2001. "Do Wages Rise with Job Seniority? The Swiss Case," CEPE Working paper series 01-07, CEPE Center for Energy Policy and Economics, ETH Zurich.
    15. 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.
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