Effects of Wages on Job Tenure

Juha Kettunen

Journal of Income Distribution, 2000, vol. 09, issue 2, 2-2

Abstract: In this article, the effect of wages on the job tenure is studies using microeconomic data on industrial companies. The data cover a period of 11 years starting from the first quarter of 1980 and contain several pieces of information on workers, jobs, and companies. The models were estimated in a competing risk framework. According to the results the wage groups of the workers and relative wage within a company are positively related to the job tenure. These effects are larger among the persons who leave the industry than among the persons who find new industrial jobs.

Date: 2000
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