Job Match, Tenure and Wages Paid by Firms

Joni Hersch and Patricia Reagan

Economic Inquiry, 1990, vol. 28, issue 3, 488-507

Abstract: Using a new data set consisting of a matched sample of workers and firms, and including explicit measures of match quality, the authors estimate a structural model and find new evidence of a strong positive relation between wages and tenure. Inclusion of firm-fixed effects does not significantly reduce the estimated returns to tenure. The results also shed light on the relative importance of human capital and job matching theories. Copyright 1990 by Oxford University Press.

Date: 1990
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