Controlling for Demand Side Factors and Job Matching: Maximum Likelihood Estimates of the Returns to Seniority Using Matched Employer-Employee Data

Benoit Dostie ()

No 03-02, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: In this paper, we match firm data to work history files in order to simultaneously estimate the wage and employment duration processes of a longitudinal sample of two million French workers employed in roughly one million firms and followed over twenty years. We use the particular structure of the data set to distinguish the impact of job search and labor demand indicators on wages and employment at the job level for the first time. Our model allows for correlated individual and job unobserved heterogeneity. Controlling for job matching, we find that returns to seniority are close to zero.

Keywords: Endogeneity; Job duration; Wage determination; Unobserved heterogeneity; Labor demand; Maximum likelihood. (search for similar items in EconPapers)
JEL-codes: C33 J30 J41 (search for similar items in EconPapers)
Date: 2003-01
View list of references

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:iea:carech:0302

Ordering information: This working paper can be ordered from
Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7

The price is Free.

Access Statistics for this paper

More papers in Cahiers de recherche from HEC Montréal, Institut d'économie appliquée
Address: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
Contact information at EDIRC.
Series data maintained by Patricia Power ().