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Experience and Schooling: Substitutes or Complements?

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This paper investigates whether returns to experience and seniority vary between workers with different levels of education and between different types of firms. Using a large administrative dataset for Norwegian manufacturing, I find that more educated workers have higher experience and seniority premiums, indicating that they accumulate more human capital (both general and firm-specific) than workers with less education. Firm characteristics are also found to be important for experience and seniority premiums. Indicators of technological change seem to be more important for returns to experience and seniority than indicators of technological level. The results suggest that workers learn from their colleagues, and that they learn the skills that their colleagues possess.

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  • Torbjørn Hægeland, 2001. "Experience and Schooling: Substitutes or Complements?," Discussion Papers 301, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:301
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    Keywords

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    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

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