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Earnings, Occupations and Labour Market Experience in Australia, 1997-2005

Author

Listed:
  • Michael Dobbie

    (Macquarie University)

  • Craig MacMillan

    (Macquarie University)

Abstract

This paper examines the relative importance of different types of labour market experience in the determination of earnings across occupations. Specifically, the paper estimates the returns to general experience, firm tenure and occupational tenure for each occupation within the Australian Standard Classification of Occupations (ASCO) in 1997 and 2005. The paper finds that there is an important role for each form of labour market experience. General experience tends to dominate the other forms of labour market experience, both statistically and numerically. While not as important as general experience, wages nevertheless rise with firm tenure in most occupations. Occupational tenure is only important in a small subset of occupations, mainly for Professionals and Tradespeople. There is also evidence that the return to occupational tenure increased significantly for Tradespeople and for Intermediate Transport and Production Workers between 1997 and 2005.

Suggested Citation

  • Michael Dobbie & Craig MacMillan, 2012. "Earnings, Occupations and Labour Market Experience in Australia, 1997-2005," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 1-15.
    • Handle: RePEc:ozl:journl:v:15:y:2012:i:1:p:1-15
    as

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    References listed on IDEAS

    as
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    6. Alison Preston, 1997. "Where Are We Now With Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.
    7. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    8. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-323, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wage differentials; Labor Costs; Monopsony; Segmented Labor Markets;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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