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Experience, Tenure, and Wage Growth of Young Black and White Men

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  • Bernt Bratsberg
  • Dek Terrell

Abstract

This paper studies the source of differences in wage growth between young black and white workers. Focusing on "terminal" high school graduates from the National Longitudinal Survey of Youth, we estimate the returns to on-the-job tenure and general labor market experience using ordinary least squares, Altonji and Shakotko, and Topel estimators. Results from all three estimators indicate that returns to general experience for black workers trail those for white workers, but that black workers earn equal if not higher returns to tenure than do white workers.

Suggested Citation

  • Bernt Bratsberg & Dek Terrell, 1998. "Experience, Tenure, and Wage Growth of Young Black and White Men," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 658-682.
    • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:3:p:658-682
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    Citations

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    Cited by:

    1. Zheng Fang & Chris Sakellariou, 2013. "Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 451-480, November.
    2. Bernt Bratsberg & James F. Ragan Jr. & John T. Warren, 2003. "Negative Returns to Seniority: New Evidence in Academic Markets," ILR Review, Cornell University, ILR School, vol. 56(2), pages 306-323, January.
    3. Arthur H. Goldsmith & Darrick Hamilton & William Darity, 2006. "Does a Foot in the Door Matter? White–Nonwhite Differences in the Wage Return to Tenure and Prior Workplace Experience," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 267-306, October.
    4. Benjamin Artz & Sarinda Taengnoi, 2019. "The Gender Gap in Raise Magnitudes of Hourly and Salary Workers," Journal of Labor Research, Springer, vol. 40(1), pages 84-105, March.
    5. H. J. Holzer & R. J. LaLonde, "undated". "Job Change and Job Stability among Less-Skilled Young Workers," Institute for Research on Poverty Discussion Papers 1191-99, University of Wisconsin Institute for Research on Poverty.
    6. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    7. Barth, Erling & Bratsberg, Bernt & Raaum, Oddbjørn, 2012. "Immigrant wage profiles within and between establishments," Labour Economics, Elsevier, vol. 19(4), pages 541-556.
    8. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
    9. Sullivan, Paul, 2010. "Empirical evidence on occupation and industry specific human capital," Labour Economics, Elsevier, vol. 17(3), pages 567-580, June.
    10. Luis Beccaria & Roxana Maurizio & Martin Trombetta & Gustavo Vázquez, 2016. "Una evaluación del efecto scarring en Argentina," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 77, August.
    11. Michael Carlos Best & Henrik Jacobsen Jacobsen, 2013. "Optimal Income Taxation with Career Effects of Work Effort," Working Papers 2013-9, Princeton University. Economics Department..
    12. Peter A. Groothuis & James Richard Hill, 2008. "Exit Discrimination in Major League Baseball: 1990–2004," Southern Economic Journal, John Wiley & Sons, vol. 75(2), pages 574-590, August.
    13. Joseph J. Sabia & Mark Wooden & Thanh Tam Nguyen, 2017. "Sexual Identity, Same‐Sex Relationships, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 903-931, April.
    14. Arif Mamun, 2012. "Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 53-68, March.
    15. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    16. Federico Favata & Julián Leone & Jorge Lo Cascio, 2021. "Youth employment in Argentina: first effect of the pandemic," Asociación Argentina de Economía Política: Working Papers 4465, Asociación Argentina de Economía Política.
    17. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003.
    18. Fang, Zheng & Sakellariou, Chris, 2015. "Discrimination or Unobserved Differences in Characteristics?-An Empirical Study on Wage Inequality," MPRA Paper 68568, University Library of Munich, Germany.
    19. Dale J. Poirier & Gary Koop & Justin Tobias, 2005. "Semiparametric Bayesian inference in multiple equation models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(6), pages 723-747.
    20. Zhang, Xuelin, 2002. "Wage Progression of Less Skilled Workers in Canada: Evidence from the SLID (1993-1998)," Analytical Studies Branch Research Paper Series 2002194e, Statistics Canada, Analytical Studies Branch.
    21. Danielle Lewis & Dek Terrell, 2001. "Experience, Tenure, and the Perceptions of Employers," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 578-597, January.

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