Do Wages Rise with Job Seniority? The Swiss Case

Cornelia Luchsinger, Rafael Lalive and Jörg Wild

Swiss Journal of Economics and Statistics (SJES), 2003, vol. 139, issue II, 207-229

Abstract: Whether or not seniority has a substantial effect on wages has been the subject of much controversy. ALTONJI and SHAKOTKO (1987) and TOPEL (1991) have put forward different empirical strategies to deal with unobserved heterogeneity. Their methods yield different results for the U.S. labor market. Different methods in controlling economy wide time trends are being identified as one of the main reasons for this finding. In this paper, we apply these methods on Swiss data. We find that returns to tenure are lower than in the U.S., and that differences between the two methodological approaches are minor with our data sample. The wage stagnation during the observation period rules out the possibility of different detrending methods as being the main reason for differences in the estimators.

Keywords: human capital; returns to experience; returns to tenure (search for similar items in EconPapers)
JEL-codes: J16 J24 J31 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sjes.ch/papers/2003-II-4.pdf (application/pdf)

Related works:
Working Paper: Do Wages Rise with Job Seniority? The Swiss Case (2001)
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: https://EconPapers.repec.org/RePEc:ses:arsjes:2003-ii-4

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Marius Brülhart

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Kurt Schmidheiny ().