NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Do Wages Rise with Job Seniority? A Reassessment

Joseph G. Altonji, Nicolas Williams

NBER Working Paper No. 6010
Issued in April 1997
NBER Program(s):   LS

We provide new estimates of the return to job seniority using data similar to that used by Abraham and Farber (1987), Altonji and Shakotko (1987) and Topel (1991) as well as a new PSID sample. Topel's use of a wage and a tenure that refer to different years, his use of the Current Population Survey to detrend the PSID, and differences between Altonji and Shakotko's estimator and Topel's estimator explain the fact that Topel obtains much larger estimates. The evidence from the data used by AS and Topel points to an effect of ten years of tenure on the log wage equal to .11, which is above AS's preferred estimate of .066 but far below Topel's estimate. However, this estimate is probably biased upward by the wage measure used in all three studies. We also obtain a modest estimate of the return to seniority using data for 1983-1991.

download in pdf format
   (659 K)

email paper

This paper is available as PDF (659 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6010

Published: Industrial and Labor Relations Review, Vol. 58, no. 3, April 2005, pp. 370-397

Users who downloaded this paper also downloaded these:
Topel w3294 Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority
Altonji and Shakotko w1616 Do Wages Rise With Job Seniority?
Abraham and Farber w1819 Job Duration, Seniority, and Earnings
Altonji, Smith, and Vidangos w14743 Modeling Earnings Dynamics
Altonji and Williams w4133 The Effects of Labor Market Experience, Job Seniority, and Job Mobility on Wage Growth
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us