Employer Learning, Job Changes, and Wage Dynamics

Seik Kim and Emiko Usui

No UWEC-2012-01, Working Papers from University of Washington, Department of Economics

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 learning is primarily public.

Date: 2012-03
New Economics Papers: this item is included in nep-cta, nep-lab and nep-lma
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Citations: View citations in EconPapers (3)

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