Learning and Wage Dynamics

Farber, Henry S.; Gibbons, Robert

doi:10.2307/2946706

Cited by 549 publications

(384 citation statements)

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“…Section III describes the data set. In Section IV we rst replicate the estimations of Farber and Gibbons (1996) and Pierret (1998, 1999) using German data. We then relax the assumption that information on the productivity of workers is known to all possible employers by splitting total labor experience into experience in the current job and previous labor market experience.…”

Section: Introductionmentioning

confidence: 99%

“…In Section II we present the basic intuition behind the idea of employer learning by brie y discussing the models developed by Farber and Gibbons (1996) and Pierret (1998, 1999). Section III describes the data set.…”

Section: Introductionmentioning

confidence: 99%

“…In their seminal paper on this issue, Farber and Gibbons (1996) argue along the lines of Riley (1979) using a dynamic model of employer learning and wage determination. Consider a w age equation of the form:…”

Section: Introductionmentioning

confidence: 99%

“…This test relies on the hypothesis that if education acts as a signal, the partial e ect of schooling on earnings will decline with increasing labor market experience of an individual, since employers gradually obtain better information on the true productivity of a worker. In recent articles, Farber and Gibbons (1996) and Pierret (1998, 1999) investigate the dynamic relationship between the returns to schooling and labor market experience in a model of employer learning. According to this model, the returns to formal education, as measured by y ears of education, is independent o r e v en decreases with labor market experience, whereas the returns to natural ability, as measured by a standardized aptitude test, parents' education or the wages of siblings, increase with labor market experience when estimating a standard Mincer-type wage equation.…”

Section: Introductionmentioning

confidence: 99%

“…This paper takes the standard models of Farber and Gibbons (1996) and Pierret (1998, 1999) to test the hypotheses of employer learning for Germany. We use a large panel data set, the German Socio-Economic Panel, from 1984 to 1996 with detailed information on job histories, formal education, the presence of explicit on-the-job training (after completion of formal education), human capital, wages and job characteristics.…”

Section: Introductionmentioning

confidence: 99%

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Employer learning and the returns to schooling

Bauer

Haisken‐DeNew

2001

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Employer Learning and the Returns to SchoolingThomas K. Bauer John P. Haiske-DeNew The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor markets, (2) internationalization of labor markets and European integration, (3) the welfare state and labor markets, (4) labor markets in transition, (5) the future of work, (6) project evaluation and (7) general labor economics. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. ABSTRACTEmployer Learning and the Returns to Schooling * * * *We examine the dynamic role of education and experience as determinants of wages. It is hypothesized that an employee's education is an important signal to the employer initially. Over time, the returns to schooling should decrease with labor market experience and increase with initially unobserved ability, since the employer gradually obtains better information on the productivity of an employee. Replicating US studies using data from a large German panel data set (GSOEP), we find no evidence for the employer learning hypothesis for Germany. Differentiating blue-collar and white-collar workers and estimating quantile regressions, however, leads to the conclusion that employer learning takes place for blue-collar workers at the lower end of the wage distribution. We further show, that information on the productivity of an employee is to a large extend private.JEL Classification: J21, J24, J31

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Employer learning and the returns to schooling

Bauer

Haisken‐DeNew

2001

Labour Economics

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How important are the cognitive skills of teenagers in predicting subsequent earnings?

Murnane

Willett²,

Duhaldeborde³

et al. 2000

J. Pol. Anal. Manage.

245

154

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Evidence of Adverse Selection from Thoroughbred Wagering

Chezum¹,

Wimmer

2000

Southern Economic Journal

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Previous research has shown the thoroughbred sales market to be affected by adverse selection. In the market, sellers who race as well as breed thoroughbreds will choose to keep thoroughbreds when their estimated private values exceed expected sales prices. The presence of asymmetric information leads these sellers to sell their low‐quality horses and keep their best for racing. We extend the analysis by examining how bettors use similar information when wagering on thoroughbred races. We show, using a sample of two‐year‐old maiden races, that homebreds (those horses kept by their breeders for racing) are favored over otherwise similar nonhomebreds.

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Learning and Wage Dynamics

Cited by 549 publications

References 0 publications

Employer learning and the returns to schooling

Employer learning and the returns to schooling

How important are the cognitive skills of teenagers in predicting subsequent earnings?

Evidence of Adverse Selection from Thoroughbred Wagering

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