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Individual Wage Growth: The Role of Industry Experience

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  • Battisti, Michele

Abstract

This paper focuses on the effect of experience within an industry on wages. I use a correlated random effects simultaneous equation model that allows individual and match heterogeneity to affect wages, job tenure, and industry experience. Iestimate my model separately for men and women using a large panel of young Italian workers for the years 1986-2004. Results show that wage returns to industry experience are much higher than wage returns to job seniority. The hypotheses of exogeneity of job seniority and industry experience in the wage equation are rejected: high-wage workers and high-wage matches last longer.

Suggested Citation

  • Battisti, Michele, 2016. "Individual Wage Growth: The Role of Industry Experience," Munich Reprints in Economics 43507, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:43507
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    1. Francesca Sgobbi & Fátima Suleman, 2015. "The Value of Transferable Skills," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(4), pages 378-399, September.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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