Tenure, Earnings and Productivity

M Mendes de Oliviera, Elchanan Cohn and B F Kiker

Oxford Bulletin of Economics and Statistics, 1989, vol. 51, issue 1, 1-14

Abstract: Employing data for the United States taken from the 1983 wave of the Panel Study of Income Dynamics, an attempt is made to estimate tenure-earnings and tenure-productivity profiles. The underlying methodological approach is to assume that earnings of self-employed workers are identical to the value of their marginal product. Relying on a two-stage regression approach and taking selectivity bias into account, the authors find that estimated tenure-earnings and tenure-productivity profiles are found to intersect twice, after six and eighteen years of tenure, respectively. They provide an explanation for the results and also calculate the present values of the two profiles. Copyright 1989 by Blackwell Publishing Ltd

Date: 1989
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