NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Experience, Performance, and Earnings

James L. Medoff, Katharine G. Abraham

NBER Working Paper No. 278 (Also Reprint No. r0159)
Issued in December 1980
NBER Program(s):   LS

This study provides direct evidence concerning the relationship between experience and performance among managerial and professional employees doing similar work in two major U. S. corporations. The facts presented indicate that while, within grade levels, there is a strong positive association between experience and relative earnings, there is either no association or a negative association between experience and relative rated performance. If we are correct that the performance ratings given to managerial and professional employees in any grade level adequately reflect those employees' relative productivity in the year of assessment, the results imply that the human capital on-the-job training model cannot explain a substantial part of the ob-served return to labor market experience.

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Document Object Identifier (DOI): 10.3386/w0278

Published: Medoff, James L. and Abraham, Katharine G. "Experience, Performance, and Earnings." The Quarterly Journal of Economics, Vol. XCV, No. 4, (December 1980), pp. 703-736. citation courtesy of

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