Experience, Tenure, and the Perceptions of Employers

Danielle Lewis and Dek Terrell

Southern Economic Journal, 2001, vol. 67, issue 3, 578-597

Abstract: This paper examines how group‐based assessments concerning employee ability impact employee compensation. The employer learns about worker ability through Bayesian updating, creating an additional channel for wage growth that is not available to those workers with only general labor market experience. Consistent with the model's predictions, results from National Longitudinal Survey of Youth (NLSY) indicate that black workers fare much better relative to white workers in returns to tenure than in returns to experience. Finally, parameter estimates in the structural model suggest that employers initially undervalue black males but that their wages rise with learning by employers over time.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/j.2325-8012.2001.tb00357.x

Related works:
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:wly:soecon:v:67:y:2001:i:3:p:578-597

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().