Employer Learning, Job Mobility, and Wage Dynamics

Emiko Usui and Seik Kim

No 912, 2013 Meeting Papers from Society for Economic Dynamics

Abstract: This paper takes a new approach to testing whether employer learning is public or private. We show that public and private learning schemes make two distinct predictions about the curvature of wage growth paths when there is a job change, because the amount of information transferred to a new employer about workers' productivity is smaller in the private learning case than in the public learning case. This prediction enables us to account for individual and job-match heterogeneity, which was not possible in previous tests. Using the National Longitudinal Survey of Youth 1979 (NLSY79), we find that employer learning is public for high school graduates and private for college graduates.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:912

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