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Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics
Open accessAbstract
We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity, and individual-level shocks. Wage growth is decomposed into contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers. The contribution from job search to wage growth, both within and between jobs, declines over the first ten years of a career—the “job-shopping” phase of a working life—after which workers settle into high-quality jobs using outside offers to generate gradual wage increases, thus reaping the benefits from competition between employers. (JEL J24, J31, J63, J64)
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Cited by
What Do Data on Millions of U.S. Workers Reveal About Lifecycle Earnings Dynamics?
Guvenen, F., Karahan, F., Ozkan, S., & Song, J. (2021) · Econometrica · doi:10.3982/ecta14603 · Cited by 282
Productivity Shocks, Long-Term Contracts, and Earnings Dynamics
Balke, N., & Lamadon, T. (2022) · American Economic Review · doi:10.1257/aer.20161622 · Cited by 53
Metadata
- Authors
- Bagger, J., Fontaine, F., Postel-Vinay, F., & Robin, J.-M.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2014-06-01
- Volume
- 104
- Issue
- 6
- Pages
- 1551-1596
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W2123464116
- Cited by
- 211
- References
- 0
- FWCI
- 37.70
- Type
- journal article
- Language
- en
- Open access
- green
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- Bagger, J., Fontaine, F., Postel-Vinay, F., & Robin, J.-M. (2014). Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics. American Economic Review. https://doi.org/10.1257/aer.104.6.1551
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