Experience, Tenure, and the Perceptions of Employers

Danielle Lewis () and Dek Terrell ()
Additional contact information
Danielle Lewis: Southeastern Louisiana University, Hammond, LA
Dek Terrell: Department of Economics, Louisiana State University

Southern Economic Journal, 2001, vol. 67, issue 3, pages 578-597

Abstract: This paper examines how group-based assessments concerning employee ability impact employee compensation. The employer learns about worker ability through Bayesian updating, creating an additional channel for wage growth that is not available to those workers with only general labor market experience. Consistent with the model’s predictions, results from National Longitudinal Survey of Youth (NLSY) indicate that black workers fare much better relative to white workers in returns to tenure than in returns to experience. Finally, parameter estimates in the structural model suggest that employers initially undervalue black males but that their wages rise with learning by employers over time.

Date: 2001
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:sej:ancoec:v:67:3:y:2001:p:578-597

Access Statistics for this article

Southern Economic Journal is edited by Laura Razzolini

More articles in Southern Economic Journal from Southern Economic Association
Contact information at EDIRC.
Series data maintained by Laura Razzolini ().