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Job Turnover and the Returns to Seniority

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  • Dostie, Benoit

Abstract

In this paper, we match firm data to individual work history files in order to simultaneously estimate the wage and employment duration processes of a longitudinal sample of two million French workers employed in roughly one million firms and followed over twenty years. The particular structure of the data set allows us to distinguish between the impact of job search and labor demand indicators on wages and employment at the job level. The model allows for correlated individual and job unobserved heterogeneity. Controlling for job matching, we find that returns to seniority are close to zero
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Suggested Citation

  • Dostie, Benoit, 2005. "Job Turnover and the Returns to Seniority," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 192-199, April.
    • Handle: RePEc:bes:jnlbes:v:23:y:2005:p:192-199
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    Cited by:

    1. John G. Sessions & John D. Skåtun, 2017. "Performance-Related Pay, Efficiency Wages and the Shape of the Tenure-Earnings Profile," Manchester School, University of Manchester, vol. 85(3), pages 295-319, June.
    2. repec:lan:wpaper:4796 is not listed on IDEAS
    3. Woodcock, Simon D., 2015. "Match effects," Research in Economics, Elsevier, vol. 69(1), pages 100-121.
    4. Michele Battisti, 2016. "Individual Wage Growth: The Role of Industry Experience," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(1), pages 40-70, January.
    5. Bernhard Boockmann & Susanne Steffes, 2010. "Workers, Firms, or Institutions: What Determines Job Duration for Male Employees in Germany?," ILR Review, Cornell University, ILR School, vol. 64(1), pages 109-127, October.
    6. Guillaume Horny & Rute Mendes & Gerard J. van den Berg, 2012. "Job Durations With Worker- and Firm-Specific Effects: MCMC Estimation With Longitudinal Employer--Employee Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(3), pages 468-480, March.
    7. Xiaolin Xing & Zhenlin Yang, 2005. "Determinants of Job Turnover Intentions : Evidence from Singapore," Labor Economics Working Papers 22588, East Asian Bureau of Economic Research.
    8. Sullivan, Paul, 2010. "Empirical evidence on occupation and industry specific human capital," Labour Economics, Elsevier, vol. 17(3), pages 567-580, June.
    9. Matthias Benz & Bruno S. Frey, 2006. "Towards a Constitutional Theory of Corporate Governance," IEW - Working Papers 304, Institute for Empirical Research in Economics - University of Zurich.
    10. repec:lan:wpaper:4362 is not listed on IDEAS
    11. Kim P. Huynh & Yuri Ostrovsky & Robert J. Petrunia & Marcel C. Voia, 2017. "Industry shutdown rates and permanent layoffs: evidence from firm-worker matched data," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-31, December.
    12. Thomas Cornelißen & Olaf Hübler, 2011. "Unobserved Individual and Firm Heterogeneity in Wage and Job‐Duration Functions: Evidence from German Linked Employer–Employee Data," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 469-489, November.
    13. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 436-460, August.
    14. Jain, Apoorva & Peter, Klara Sabirianova, 2017. "A Joint Hazard-Longitudinal Model of the Timing of Migration, Immigrant Quality, and Labor Market Assimilation," IZA Discussion Papers 10887, Institute of Labor Economics (IZA).
    15. Woodcock Simon D, 2010. "Heterogeneity and Learning in Labor Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-69, September.
    16. V Maltezou & G Johnes, 2008. "It''S Been A Long Time: A Comparative Analysis Of Job Duration In Banking," Working Papers 596221, Lancaster University Management School, Economics Department.
    17. repec:lan:wpaper:4491 is not listed on IDEAS
    18. Guillaume Horny & Rute Mendes & Gerard J. Van den Berg, 2006. "Job mobility in Portugal: a Bayesian study with matched worker-firm data," Working Papers of BETA 2006-32, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    19. Bertoni, Marco & Brunello, Giorgio & Rocco, Lorenzo, 2015. "Selection and the age – productivity profile. Evidence from chess players," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 45-58.
    20. Thomas Zwick, 2012. "Consequences of Seniority Wages on the Employment Structure," ILR Review, Cornell University, ILR School, vol. 65(1), pages 108-125, January.
    21. Boockmann, Bernhard & Steffes, Susanne, 2007. "Seniority and Job Stability: A Quantile Regression Approach Using Matched Employer-Employee Data," ZEW Discussion Papers 07-014, ZEW - Leibniz Centre for European Economic Research.
    22. Kyoji Fukao & Ryo Kambayashi & Daiji Kawaguchi & Hyeog Ug Kwon & Young Gak Kim & Izumi Yokoyama, 2006. "Deferred Compensation: Evidence from Employer-Employee Matched Data from Japan," Hi-Stat Discussion Paper Series d06-187, Institute of Economic Research, Hitotsubashi University.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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