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Wages, Experience and Seniority

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Author Info
Dustmann, Christian
Meghir, Costas

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Abstract

This paper develops and estimates a human capital model of wage growth based on learning by doing. Learning by doing rates are assumed to be heterogeneous and firms offer different career structures in terms of the rate of acquisition of firm specific human capital. The model is estimated using a unique data set drawn from German administrative records and including a complete employment and earnings history for each worker in our sample. We find evidence of increased labour market attachments for individuals with higher returns to experience. This has important implications for the estimates. The estimated returns to experience are 2.7% a year. The returns to tenure are close to zero. Crucial identifying information is provided by plant closures.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2077.

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Date of creation: Feb 1999
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Handle: RePEc:cpr:ceprdp:2077

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Related research
Keywords: Human Capital; Job Mobility; Matching; Wage Growth;

Other versions of this item:

Find related papers by 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
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.
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This page was last updated on 2009-10-29.

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