TY - JOUR

T1 - Adjustments of Wage-Tenure Profiles with Respect to Entry Age

AU - Pfeifer, Christian

PY - 2013/2/1

Y1 - 2013/2/1

N2 - This paper adds a new empirical finding of the impact of workers’ entry age on wage-tenure profiles to the literature, which might be explained by human capital and deferred compensation models. I analyze two different data sets stemming from personnel records of a large German company and from German linked employer-employee data. The analyzed company employs a quite large share of older workers but does not hire many older workers. Estimated earnings functions indicate that wage-tenure profiles are adjusted with respect to entry age: workers with older entry age earn higher entry wages and have lower wage growths than younger workers. The linked employer-employee data confirm the findings from personnel records as most firms pay higher entry wages and flatter wage-tenure profiles to older new entrants. The personnel data set and the linked employer-employee data set have their advantages and disadvantages so that an analysis of both enhances the credibility of the main results.

AB - This paper adds a new empirical finding of the impact of workers’ entry age on wage-tenure profiles to the literature, which might be explained by human capital and deferred compensation models. I analyze two different data sets stemming from personnel records of a large German company and from German linked employer-employee data. The analyzed company employs a quite large share of older workers but does not hire many older workers. Estimated earnings functions indicate that wage-tenure profiles are adjusted with respect to entry age: workers with older entry age earn higher entry wages and have lower wage growths than younger workers. The linked employer-employee data confirm the findings from personnel records as most firms pay higher entry wages and flatter wage-tenure profiles to older new entrants. The personnel data set and the linked employer-employee data set have their advantages and disadvantages so that an analysis of both enhances the credibility of the main results.

KW - Economics

KW - Internal labor markets

KW - Wage-tenure profiles

KW - Gender and Diversity

KW - entry age

KW - Insider econometrics

UR - http://www.scopus.com/inward/record.url?scp=85006311919&partnerID=8YFLogxK

U2 - 10.1007/s11573-012-0651-3

DO - 10.1007/s11573-012-0651-3

M3 - Journal articles

VL - 83

SP - 171

EP - 191

JO - Journal of Business Economics : JBE

JF - Journal of Business Economics : JBE

SN - 0044-2372

IS - 2

ER -