How Worker Productivity and Wages Grow with Tenure and Experience: The Firm Perspective
Publikation: Working paper › Forskning
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How Worker Productivity and Wages Grow with Tenure and Experience : The Firm Perspective. / Caplin, Andrew; Lee, Minjoon; Leth-Petersen, Søren; Sæverud, Johan; Shapiro, Matthew.
2022.Publikation: Working paper › Forskning
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TY - UNPB
T1 - How Worker Productivity and Wages Grow with Tenure and Experience
T2 - The Firm Perspective
AU - Caplin, Andrew
AU - Lee, Minjoon
AU - Leth-Petersen, Søren
AU - Sæverud, Johan
AU - Shapiro, Matthew
PY - 2022
Y1 - 2022
N2 - How worker productivity evolves with tenure and experience is central to economics, shaping, forexample, life-cycle earnings and the losses from involuntary job separation. Yet, worker-levelproductivity is hard to identify from observational data. This paper introduces direct measurementof worker productivity in a firm survey designed to separate the role of on-the-job tenure fromtotal experience in determining productivity growth. Several findings emerge concerning theinitial period on the job. (1) On-the-job productivity growth exceeds wage growth, consistentwith wages not being allocative period-by-period.(2) Previous experience is a substitute, but a farless than perfect one, for on-the-job tenure. (3) There is substantial heterogeneity across jobs inthe extent to which previous experience substitutes for tenure. The survey makes use ofadministrative data to construct a representative sample of firms, check for selective non-response, validate survey measures with administrative measures, and calibrate parameters notmeasured in the survey.
AB - How worker productivity evolves with tenure and experience is central to economics, shaping, forexample, life-cycle earnings and the losses from involuntary job separation. Yet, worker-levelproductivity is hard to identify from observational data. This paper introduces direct measurementof worker productivity in a firm survey designed to separate the role of on-the-job tenure fromtotal experience in determining productivity growth. Several findings emerge concerning theinitial period on the job. (1) On-the-job productivity growth exceeds wage growth, consistentwith wages not being allocative period-by-period.(2) Previous experience is a substitute, but a farless than perfect one, for on-the-job tenure. (3) There is substantial heterogeneity across jobs inthe extent to which previous experience substitutes for tenure. The survey makes use ofadministrative data to construct a representative sample of firms, check for selective non-response, validate survey measures with administrative measures, and calibrate parameters notmeasured in the survey.
U2 - 10.3386/w30342
DO - 10.3386/w30342
M3 - Working paper
T3 - National Bureau of Economic Research. Working Paper Series
BT - How Worker Productivity and Wages Grow with Tenure and Experience
ER -
ID: 336459741