The Determinants of Employee Productivity and Earnings: Some New Evidence
This paper uses data from a nationwide sample of firms on employee wages and characteristics to reexamine the determinants of employee productivity and earnings. The data include several measures of job experience, training, and both worker and firm characteristics as well as subjective employer productivity ratings and earnings of workers. Given observations on the same individual at different points in time, we can consider both levels and changes in earnings and productivity, with various firm- and job-specific effects eliminated from the latter. The results show that: 1) Both previous experience and tenure in the current job have significant, positive effects on wages and productivity. Previous experience effects are found primarily on levels of wages and productivity while tenure affects occur for both current levels and changes. 2) Hours of training are positively related to productivity and wage growth but generally not to levels of either. 3) Among demographic characteristics, we find productivity growth and current productivity levels to be slightly higher for females while their wages are significantly lower. Other determinants of earnings and productivity ratings (e.g., such as various types of incentive pay and the fraction unionized) are considered here as well.
|Date of creation:||Dec 1988|
|Date of revision:|
|Publication status:||Published as "The Determinants of Employee Productivity and Earnings", IR, Vol. 29, no. 3 (1990): 403-422.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James N. Brown, 1983. "Are Those Paid More Really No More Productive? Measuring the Relative Importance of Tenure Versus On-The-Job Training in Explaining Wage Growth," Working Papers 549, Princeton University, Department of Economics, Industrial Relations Section..
- Frank, Robert H, 1984. "Are Workers Paid Their Marginal Products?," American Economic Review, American Economic Association, vol. 74(4), pages 549-71, September.
- repec:fth:prinin:169 is not listed on IDEAS
- Lazear, Edward P, 1986. "Salaries and Piece Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 405-31, July.
- Katharine G. Abraham & Henry S. Farber, 1986.
"Job Duration, Seniority and Earnings,"
407, Massachusetts Institute of Technology (MIT), Department of Economics.
- Seiler, Eric, 1984. "Piece Rate vs. Time Rate: The Effect of Incentives on Earnings," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 363-76, August.
- Roger Klein & Richard H. Spady & Andrew Weiss, 1987. "Factors Affecting the Output and Quit Propensities of Production Workers," NBER Working Papers 2184, National Bureau of Economic Research, Inc.
- Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
- James L. Medoff & Katharine G. Abraham, 1980.
"Experience, Performance, and Earnings,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 95(4), pages 703-736.
- Barron, John M & Loewenstein, Mark A, 1986. "On Imperfect Evaluation and Earning Differentials," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 595-614, October.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Meitzen, Mark E, 1986. "Differences in Male and Female Job-quitting Behavior," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 151-67, April.
- repec:pri:indrel:dsp0144558d29c is not listed on IDEAS
- Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc.
- Weiss, Andrew, 1988. "High School Graduation, Performance, and Wages," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 785-820, August.
- James L. Medoff & Katharine G. Abraham, 1981. "Are Those Paid More Really More Productive? The Case of Experience," Journal of Human Resources, University of Wisconsin Press, vol. 16(2), pages 186-216.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:2782. 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: ()
If references are entirely missing, you can add them using this form.