Tenure-Based Wage Setting

22 Pages Posted: 17 Mar 2000

See all articles by Robert A. Hart

Robert A. Hart

University of Stirling - Department of Economics; Institute for the Study of Labor (IZA)

Felix Ritchie

Government of the United Kingdom - Office for National Statistics

Date Written: July 1999

Abstract

We provide empirical support for the contention that within-job wage growth relates purely to job-specific performance and that returns to general experience are assessed at the point of job change. Using the British New Earnings Survey panel data we identify job changes that take place both within and between firms. We follow a cohort of 6778 male workers (born between 1958 and 1962) for the period 1975 to 1994 and estimate their within-job wage changes by allowing returns to vary over jobs. Between job changes are observed for individuals changing jobs in 1994. This work leads us to question the meaningfulness of attempts to separate returns to general and firm-specific human capital.

JEL Classification: J3, J6

Suggested Citation

Hart, Robert A. and Ritchie, Felix, Tenure-Based Wage Setting (July 1999). Available at SSRN: https://ssrn.com/abstract=169072 or http://dx.doi.org/10.2139/ssrn.169072

Robert A. Hart (Contact Author)

University of Stirling - Department of Economics ( email )

Stirling, Scotland FK9 4LA
United Kingdom
+44 1786 467 471 (Phone)
+44 1786 467 469 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Felix Ritchie

Government of the United Kingdom - Office for National Statistics ( email )

London, SW1A 2AA
United Kingdom

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