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On the industry experience premium and labor mobility

Montserrat Vilalta-Bufi

No 208, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: There is evidence that experience premium differs across industries. We propose a theoretical model for explaining these differences. We assume that labor mobility brings external knowledge to the firm, which increases its productivity. We find that industry experience premium is decreasing in the inter-firm mobility costs, while increasing in the learning-by-doing and the technological level of the industry. Moreover, it has a U-shape relationship with the level of learning-by-hiring, the substitutability between different types of experienced workers and the variety of knowledge in the industry. Results are consistent with the empirical findings that R&D-intensive industries have steeper wage profiles.

JEL-codes: J24 J30 J61 (search for similar items in EconPapers)
Pages: 0 pages
Date: 2008
New Economics Papers: this item is included in nep-bec and nep-lab
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Journal Article: On the industry experience premium and labor mobility (2010) Downloads
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