Adjustments of Wage-Tenure Profiles with Respect to Entry Age
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Adjustments of Wage-Tenure Profiles with Respect to Entry Age. / Pfeifer, Christian.
In: Journal of Business Economics : JBE, Vol. 83, No. 2, 01.02.2013, p. 171-191.Research output: Journal contributions › Journal articles › Research › peer-review
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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 -