Seniority wages and establishment characteristics

Thomas Zwick

Labour Economics, 2011, vol. 18, issue 6, 853-861

Abstract: A representative linked employer–employee panel and an innovative two-step estimation strategy are used to show that large and profitable establishments as well as establishments with a highly qualified workforce pay high seniority wages. Also collective bargaining coverage, works councils and reduced working time for older employees are positively correlated with seniority wages, the share of foreigners, females as well as initial wage levels for job entrants are negatively correlated. These results support an agency based motivation for seniority wages with older employees' wages set higher than their productivity.

Keywords: Seniority wages; Establishment characteristics; Linked employer–employee data (search for similar items in EconPapers)
JEL-codes: J14 J21 J31 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:18:y:2011:i:6:p:853-861

DOI: 10.1016/j.labeco.2011.06.003

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