Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics

By Jesper Bagger, F. Fontaine, F. Postel-Vinay, J. Robin. 2014

274 citations recorded by the source corpus.

We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity and individual-level shocks. Career wage growth is decomposed into the contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers, and both human capital accumulation and job search contribute to the observed concavity of wage-experience pro files. The contribution from job search to wage growth, both within- and between-job, declines over the fi rst ten years of a career- the `job-shopping' phase of a working life - after which workers settle into high-quality jobs and use outside off ers to generate gradual wage increases, thus reaping the benefi ts from competition between employers.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/8a13d01d4f302c227ed3fad09a1d0e7b59ca797c

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In Economics and Econometrics

Citations in the corpus

Leave‐Out Estimation of Variance Components (2018, background): “, Burdett and Mortensen, 1998) suggest older workers have had more time to climb (and fall off) the job ladder and to receive outside offers (Bagger et al., 2014), which may result in more dispersed firm wage premia.”
Inferring Labor Income Risk and Partial Insurance from Economic Choices (2014, methodology): “Among these, our philosophy for selecting the auxiliary model is in the same spirit as Magnac, Robin, and Visser (1995) and Bagger et al. (2014), who use an auxiliary model that mimics the true structural equations of their model.”
Life Cycle Wage Growth across Countries (2017, background): “Alternatively, extractive institutions in poor countries may discourage workers from investing in human capital, since their returns can be arbitrarily expropriated (Bhattacharya et al., 2013). This logic is consistent with recent evidence that higher taxation of labor income in Europe can explain a”
What Do Data on Millions of U.S. Workers Reveal about Life-Cycle Earnings Risk? (2015, background): “Going back to the work of Topel and Ward (1992), economists have found important differences between the earnings changes that occur during an employment relationship and those that occur across jobs (see, more recently, Low et al. (2010), Altonji et al. (2013), and Bagger et al. (2014)).”
A Distributional Framework for Matched Employer Employee Data (2019, background): “(2008), Bagger et al. (2014), Hagedorn et al. (2014), Lamadon et al. (2013), and Bagger and Lentz (2014). (3)For example, they may not be consistent with wage posting models with match-specific heterogeneity, or with sequential auctions mechanisms as in Postel-Vinay and Robin (2002), as we discuss b”