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Job Matching and Wage Growth in the U.S. and Germany

  • Kenneth A. Counch

    (University of Connecticut)

This paper examines the contribution of job matching to wage growth in the U.S. and Germany using data drawn from the Panel Study of Income Dynamics and the German Socio-Economic Panel from 1984 through 1992. Using a symmetrical set of variables and data handling procedures, real wage growth is found to be higher in the U.S. than in Germany during this period. Also, using two different estimators, job matches are found to enhance wage growth in the U.S. and retard it in Germany. The relationship of general skills to employment in each country appears responsible for this result.

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File URL: http://web2.uconn.edu/economics/working/2003-10.pdf
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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2003-10.

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Length: 32 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:uct:uconnp:2003-10
Contact details of provider: Postal: University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063
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Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/

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  1. Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
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  4. Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993, March.
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  7. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  8. Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June.
  9. Lazear, Edward P & Moore, Robert L, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, MIT Press, vol. 99(2), pages 275-96, May.
  10. Gerard A. Pfann & Daniel S. Hamermesh, 2001. "Two-Sided Learning, Labor Turnover and Displacement," NBER Working Papers 8273, National Bureau of Economic Research, Inc.
  11. Levine, David I., 1991. "Worth Waiting For? Delayed Compensation, Training and Turnover in the United States and Japan," Institute for Research on Labor and Employment, Working Paper Series qt97m9v25n, Institute of Industrial Relations, UC Berkeley.
  12. James L. Medoff & Katharine G. Abraham, 1980. "Experience, Performance, and Earnings," NBER Working Papers 0278, National Bureau of Economic Research, Inc.
  13. Flinn, Christopher J, 1986. "Wages and Job Mobility of Young Workers," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S88-S110, June.
  14. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, vol. 75(4), pages 721-35, September.
  15. Masanori Hashimoto, 2001. "Firm-Specific Human Capital as a Shared Investment: Reply," American Economic Review, American Economic Association, vol. 91(1), pages 348-349, March.
  16. Gerard A. Pfann & Daniel S. Hamermesh, 2000. "Two-Sided Learning, Labor Turnover, and Worker Displacement," Working Papers 0021, Harris School of Public Policy Studies, University of Chicago.
  17. Abowd, J.M. & Kramarz, F. & Margolis, D.N. & Troske, K.R., 1998. "The Relative Importance of Employer and Employeee Effects on Compensation: a Comparison of France and the United States," Papiers du Laboratoire de Microéconomie Appliquée 1998-10, Université Panthéon-Sorbonne (Paris 1).
  18. Kenneth A. Couch, 2001. "Earnings losses and unemployment of displaced workers in Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 559-572, April.
  19. Neal, Derek, 1995. "Industry-Specific Human Capital: Evidence from Displaced Workers," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 653-77, October.
  20. Rainer Winkelmann, 1996. "Employment Prospects and Skill Acquisition of Apprenticeship-Trained Workers in Germany," ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
  21. Ruhm, Christopher J, 1990. "Do Earnings Increase with Job Seniority?," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 143-47, February.
  22. Hessel Oosterbeek & Edwin Leuven, 2001. "Firm-Specific Human Capital as a Shared Investment: Comment," American Economic Review, American Economic Association, vol. 91(1), pages 342-347, March.
  23. 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.
  24. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  25. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
  26. J. P. Jacobsen & L. M. Levin, 2002. "Calculation of returns to job tenure revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 9(7), pages 473-477.
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