TY  - JOUR
AU  - Medoff,James L.
TI  - The Earnings Function: A Glimpse Inside the Black Box
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 224
PY  - 1978
Y2  - 1978
UR  - http://www.nber.org/papers/w0224
L1  - http://www.nber.org/papers/w0224.pdf
N1  - Author contact info:
James L. Medoff
Department of Economics
Harvard University
Littauer Center 115
Cambridge, MA  02138
Tel: 617/495-4209
E-Mail: jmedoff@harvard.edu
AB  - This paper studies the wage determination process for a group of managerial employees in a major U.S. airline. As would be expected, those with greater-than-average schooling, pre-company labor market experience, and company service receive greater-than-average earnings. The analysis also addresses the question of whether or not the managers within a grade level who are paid more receive higher performance ratings by their supervisors. The answer is "no" in the case of those with more pre-company labor market experience (i.e., those who are older) and with more company service. This suggests that the salaries received by managers within a grade reflect their age and tenure with the company more than their present performance.
ER  -