Work

Early Starters versus Late Beginners

Year: 1999

Type: article

Abstract: We consider a model of wage formation characterized by two features, learning and downward rigidity. We show that wages should exhibit a late‐beginning property: when one controls for the wage at date t, the wage at date t + 1 should be negatively correlated with the wage at date 6–1. We test this property on a sample of about 1,000 executives of a French state‐owned firm whose careers we observe for 15 years. This organization exhibits the features that charecterize internal labor markets; in particular, careers consist of sequences of discrete promotions, a fact that generates specific econometric problems. The results confirm the prediction.

Source: Journal of Political Economy

DOI: 10.1086/250077

Authors: Pierre‐Andre Chiappori, Bernard Salanie, Julie Valentin

Institutions: University of Chicago, Centre National de la Recherche Scientifique, Institut National de la Statistique et des Etudes Economiques, Université Paris 1 Panthéon-Sorbonne

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2008411980

FWCI: 10.61

Cites: 6

Cited by: 88

Related to: 10