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Length of Service and the Operation of Internal Labor Markets

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  • Katharine G. Abraham
  • James L. Medoff

Abstract

This paper presents a summary of the evidence which has recently been collected concerning the role of length of service in the operation of internal labor markets. It argues that these data are inconsistent with the human capital model of the experience-earnings and experience-layoff relationships. The paper concludes by asserting that if we are ever to fully understand the role of service, newdata are needed.

Suggested Citation

  • Katharine G. Abraham & James L. Medoff, 1983. "Length of Service and the Operation of Internal Labor Markets," NBER Working Papers 1085, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:1085
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    References listed on IDEAS

    as
    1. 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.
    2. Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
    3. Charles Brown, 1982. "Estimating the Determinants of Employee Performance," Journal of Human Resources, University of Wisconsin Press, vol. 17(2), pages 178-194.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    5. Katharine G. Abraham & James L. Medoff, 1983. "Length of Service, Terminations and the Nature of the Employment Relationship," NBER Working Papers 1086, National Bureau of Economic Research, Inc.
    6. Yannis M. Ioannides & Christopher A. Pissarides, 1983. "Wages and Employment With Firm-Specific Seniority," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 573-580, Autumn.
    7. James L. Medoff & Katharine G. Abraham, 1980. "Experience, Performance, and Earnings," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 703-736.
    8. Dan H. Mater, 1941. "A Statistical Study of the Effect of Seniority Upon Employee Efficiency," The Journal of Business, University of Chicago Press, vol. 14, pages 169-169.
    9. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    10. Hanushek, Eric A. & Rivkin, Steven G., 2006. "Teacher Quality," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 18, pages 1051-1078, Elsevier.
    11. Katharine G. Abraham & James L. Medoff, 1983. "Years of Service and Probability of Promotion," NBER Working Papers 1191, National Bureau of Economic Research, Inc.
    12. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    13. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-652, September.
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    Cited by:

    1. John Knight & Linda Yueh, 2002. "The Role of Social Capital in the Labour Market in China," Economics Series Working Papers 121, University of Oxford, Department of Economics.
    2. Abraham, Katharine G & Farber, Henry S, 1987. "Job Duration, Seniority, and Earnings," American Economic Review, American Economic Association, vol. 77(3), pages 278-297, June.
    3. Booth, Alison & Nolen, Patrick, 2012. "Choosing to compete: How different are girls and boys?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 542-555.
    4. repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
    5. Morley Gunderson & James E. Pesando, 1988. "The Case for Allowing Mandatory Retirement," Canadian Public Policy, University of Toronto Press, vol. 14(1), pages 32-39, March.

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