EconPapers    
Economics at your fingertips  
 

Seniority

DongIk Kang and Miles Kimball

No 31563, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the optimal wage structure of a firm with imperfect monitoring of worker effort. We find that when firms can commit to (implicit) long-term contracts, imperfect monitoring leads to optimal wage profiles that reflect worker seniority. We provide a precise measure of seniority as a ratio of co-state variables and illustrate how this measure of seniority evolves over the worker’s tenure with the firm and how it affects wages, effort, and separation rates. We also show how earnings loss from unemployment reflects seniority and how optimal monitoring intensity, amenities and on-the-job training evolve with seniority.

JEL-codes: J0 J31 J32 (search for similar items in EconPapers)
Date: 2023-08
New Economics Papers: this item is included in nep-cta, nep-lma and nep-mic
Note: EFG LS
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w31563.pdf (application/pdf)

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:nbr:nberwo:31563

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31563

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-22
Handle: RePEc:nbr:nberwo:31563