Individual Wage Growth: The Role of Industry Experience

Michele Battisti ()

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: This paper focuses on the effect of experience within an industry on wages. I use a correlated random effects simultaneous equation model that allows individual and match heterogeneity to affect wages, job tenure, and industry experience. Iestimate my model separately for men and women using a large panel of young Italian workers for the years 1986-2004. Results show that wage returns to industry experience are much higher than wage returns to job seniority. The hypotheses of exogeneity of job seniority and industry experience in the wage equation are rejected: high-wage workers and high-wage matches last longer.

Date: 2016
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Published in Industrial Relations 1 55(2016): pp. 40-70

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Related works:
Journal Article: Individual Wage Growth: The Role of Industry Experience (2016)
Working Paper: Individual Wage Growth: The Role of Industry Experience (2013)
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