Individual Wage Growth: The Role of Industry Experience

This paper focuses on the effect of experience within an industry on wages. I use a correlated random effects simultaneous equation model that allows individual and match heterogeneity to affect wages, job tenure, and industry experience. I estimate my model separately for men and women using a large panel of young Italian workers for the years 1986–2004. Results show that wage returns to industry experience are much higher than wage returns to job seniority. The hypotheses of exogeneity of job seniority and industry experience in the wage equation are rejected: high‐wage workers and high‐wage matches last longer.     

Two paths towards job instability: Comparing changes in the distribution of job tenure duration in the United Kingdom and Germany, 1984–2014

This study provides novel evidence on trends in job stability in the United Kingdom and Germany, two capitalist economies with distinct sets of institutions and labour market reform trajectories. While we find evidence of an increase in short-term jobs for men in both countries, we also find important differences in the overall patterns of change in the distribution of job tenure duration. The United Kingdom follows a masked instability pattern with opposite job stability trends for men and women. On the other hand, we find evidence of a polarization of the job tenure distribution among men and women in Germany. These findings are partly consistent with expectations from the dualization literature, emphasizing a growing segmentation of the labour market between insiders and outsiders. More generally, this study highlights the existence of multiple paths towards increased job instability that appear to be rooted in institutional differences.     

Workers’ tenure and firm productivity: New evidence from matched employer-employee panel data

Using rich longitudinal matched employer-employee data on Belgian firms, we explore the impact of workers’ tenure on firm productivity. To do so, we estimate production functions augmented with firm-level measures of tenure. We deal with the endogeneity of standard inputs and tenure, which arises from unobserved firm heterogeneity and reverse causality, by applying a modified version of Ackerberg et al.’s (2015) control function method, which explicitly removes firm fixed effects. Consistently with recent theoretical predictions, our analyses point to positive, but decreasing, returns to tenure. We also find that the impact differs widely across several firm dimensions. Tenure is particularly beneficial for productivity in contexts characterized by a certain degree of routineness and low job complexity. Along the same lines, our findings indicate that tenure exerts stronger positive impacts in industrial and capital-intensive firms, as well as in firms less reliant on ICT-intensive and knowledge-intensive processes.     

Jobs Lost, Jobs Regained: An Analysis of Black/White Differences in Job Displacement in the 1980s

Over the period 1982–1991, black men were considerably more likely to experience job displacement than were white men, and following displacement, the likelihood of reemployment was substantially lower for black men. Using data from the 1984–1992 Displaced Worker Surveys, we find that black men experienced rates of job displacement that were 30 percent higher, and reemployment rates that were 30 percent lower than the corresponding rates for white men. We find that racial differences in education levels and occupational distributions explain part of these racial gaps in job displacement and reemployment, whereas racial differences in industry distributions worked to narrow these gaps.     

Career orientations of R&D professionals in Korea

This study empirically examined the relationships between career orientations of R&D professionals in Korea and other personal characteristics such as demographic factors, work-related outcomes, and reward preferences. The results, based on the survey about 1,240 technical people in 15 R&D organizations, revealed five distinctive and independent career orientations: technical, manager, project, technical transfer, and entrepreneurial orientations. The career orientations of R&D professionals are found to be different between private and public sectors and to be associated with their education level and organizational tenure. It is also observed that R&D professionals with different career orientations exhibit different work-related outcomes and reward preferences. For instance, technical-oriented professionals tend to be more educated, to exhibit better job attitudes and technical performances, and to favor professional rewards. While those with manager and transfer orientations are longer-tenured, have more positive job attitudes but lower technical performances, and prefer social status and prestige and career rewards in their organization. Both project- and entrepreneur-oriented professionals exhibit a less positive attitude toward their organizations, but seek different reward schemes: the former pursues challenging R&D projects with autonomy and the latter favors financial returns. Finally, the implications of these findings for managing careers of R&D professionals are discussed.     

The Wage Premium for Job Seniority During the 1980s and Early 1990s

In this article I use Panel Study of Income Dynamics (PSID) data to study whether the rewards for job tenure have fallen since the early 1980s. An upward-sloping seniority-wage profile is generally thought to be an important dimension of compensation during a career. However, recent interest in the incidence of layoffs and changes in the structure of firms gives rise to the possibility that employment contracts are less often being structured to reward tenure or that such contracts are more difficult to honor. Using a two-stage estimator to attempt to control unmeasured individual and job match effects on wages, I find some evidence that the wage premium paid to senior workers has declined moderately. However, I find that these results are mildly sensitive to alternative methods of handling the relatively noisy PSID tenure data.     

Finance,Corporate Governance,and the Employment Relationship

This comparative paper examines the relationship between equity markets and corporate governance on one hand, and job tenure, training, and pay on the other. Two dimensions of equity markets and corporate governance are used: share trading activity and mergers and acquisitions. There is support for the posited links between these measures and job tenure, employee stock ownership plans, pay dispersion, and collective bargaining arrangements. Evidence on the relationship with training is more mixed.     

Socially Useless Jobs

Recent research suggests that many workers in modern economies think that their job is socially useless, i.e., that it makes no or a negative contribution to society. However, the evidence so far is mainly anecdotal. We use a representative dataset comprising 100,000 workers from forty‐seven countries at four points in time. We find that approximately 8 percent of workers perceive their job as socially useless, while another 17 percent are doubtful about the usefulness of their job. There are sizeable differences among countries, sectors, occupations, and age groups, but no trend over time. A vast majority of workers cares about holding a socially useful job and we find that they suffer when they consider their job useless. We also explore possible causes of socially useless jobs, including bad management, strict job protection legislation, harmful economic activities, labor hoarding, and division of labor.     

Job creation and job destruction in EU agriculture

This is the first paper to study job creation and destruction in EU agriculture. We disaggregate gross employment patterns and net job flows into detailed intra-sectoral labour adjustment dynamics based on a unique EU-wide farm level panel dataset for 1990–2005. We find that: (1) job creation and destruction rates in EU agriculture are comparable to other sectors; (2) there is some evidence of ongoing substitution of family labour for hired labour; (3) there are important differences in job creation and destruction rates between different Member States; (4) these differences can be attributed to structural differences across countries, sectors and farm types; (5) time variation of job reallocation fluctuates countercyclically; and (6) idiosyncratic effects are the main driver of time variance in job reallocation.     

Teachers’ Unions,Compensation, and Tenure

In this paper I show that school districts in which teachers negotiate via collective bargaining have greater returns to experience and grant tenure earlier than districts without collective bargaining. Districts that are unionized, either with or without legal collective bargaining protections, have higher returns to degrees and higher starting salaries than districts without a union. Unionization is not strongly correlated with the existence of output‐based pay for performance but is correlated with the use of output‐based measures in tenure decisions. Unionization is positively correlated with the number of junior teachers dismissed for poor performance but not strongly correlated with the number of senior teachers dismissed for poor performance.     

Institutional Capital Flows and Return Dynamics in Private Commercial Real Estate Markets

This article examines the short- and long-run dynamics among institutional capital flows and returns in private real estate markets. At the aggregate U.S. level, we find evidence that lagged institutional flows significantly influence subsequent returns. When disaggregating by property type at the national level, we find that capital flows predict subsequent returns in the apartment and office sectors, but not in the retail and industrial markets. At the metropolitan level, we find that the flows help explain subsequent returns in a limited number of core business statistical areas (CBSAs), although these CBSAs collectively represent about 30% of institutional capital. We find no evidence that institutional returns are predictive of future capital flows at the national or CBSA level, suggesting that institutional investors are not chasing returns.     

R&D professionals' reactions to the career plateau: Mediating effects of supervisory behaviours and job characteristics

A career plateau is defined as that point in a person's career which represents a cessation of both lateral and upward movement between jobs. The present study elaborates the idea that a fuller understanding of individual reactions to the career plateau can be achieved by considering supervisory behaviours and job characteristics as variables transmitting the influence of career plateauing to behavioural and attitudinal reaction measures. It is suggested that supervisors invest less attention and resources in plateaued employees and that plateaued employees are assigned to jobs with less motivating potential. Analyses of questionnaire data from 618 R&D professionals in 11 large West German firms show that there are significant differences between plateaued R&D professionals (i. e. those subjects with at least 10 years of job tenure) and a nonplateaued comparison group (i. e. respondents with not more than 6 years of job tenure) controlling for age as a potential confounding influence. Specifically, plateaued R&D professionals indicate less working hours, to be less satisfied with their career and their work, to be less involved in their work, and they tend to produce less publications and patents per year of company tenure. Furthermore, considerable differences are found between one's immediate supervisor's behaviours (e. g. provision of job-related performance feedback) reported by plateaued professionals and their non-plateaued counterparts. However, even after controlling the mediating effects of supervisory behaviours and job characteristics variables plateauing still had a small, but significant detrimental effect on 3 out of 6 reaction measures. Implications are outlined for organizational career management activities.     

The Impact of Middle Manager Training on Productivity: A Test on Italian Companies

This paper presents panel evidence on the productivity effects of middle managers’ off‐the‐job formal training in Italy. It is based on a rich and reliable panel dataset covering all sectors of the Italian economy over the period 2006–2011. We employ panel data techniques and self‐selection models to show that off‐the‐job formal training for middle management has a significant nonlinear exogenous effect on total factor productivity. Moreover, results indicate that middle managers’ off‐the‐job formal training is more effective in larger firms and that different training methods have heterogeneous effects on productivity.     

Factors Affecting Perceptions of Smallest Meaningful Pay Increases

This analysis suggests that an individual's current level of earnings may be one of the most important variables influencing his/her perception of incremental increases. Also, job difficulty (measured in terms of the average number of nights spent away from home per month on job-related duties) contributes significantly to the explanation of SMPI for both the organizational recognition group and the monetary considerations group. For the ORG group, the pay increase an individual finds meaningful appears to be influenced as well by job input factors such as total work experience, tenure in present job, tenure with present employer, and age. These results support the hypothesis that individuals with relatively high levels of training and experience and higher current earnings will tend to have higher expectations with regard to salary increases than will others, and that these expectations in turn will be reflected in higher thresholds of what is perceived as the smallest meaningful pay increase. Overall, much of the evidence supports the hypothesis that the predictors of SMPI will be different for the ORG and MCG groups. However, the relatively small size of the MCG sample and the associated problem of multicollinearity dictate caution in generalizing our results.* In addition, our study suffers from problems related to model underspecification, insofar as some of the explanatory variables identified in Lawler's model of pay satisfaction were not considered.     

REIT-Based Pure-Play Portfolios: The Case of Property Types

This article explores a technique for constructing REIT-based pure-play portfolios which replicate the performance of target real estate sectors without direct exposure to non-target sectors. The construction of pure-play portfolios uses a combination of long and short positions, and does not require time-series data for the target sectors. Pure-play portfolios may be useful for hedging, speculation, building custom-designed balanced portfolios, calculating betas for capital budgeting and developing historical performance indices. Performance indices for the four major commercial property-type sectors are presented in this paper. REIT-based sectoral returns are then compared with NCREIF-based returns by property type.     

Employment Contacts and Minority-White Wage Differences

We study effects of job contacts on wages in inner-city Boston in 1989 and in the 1982 NLSY. Race/Hispanicity differences in wages are not explained by an absence of contacts among minority youths. Rather, in the Boston data, lower wages of black youths are explained by lower "returns" to their contacts. In the NLSY there is little evidence of lower return to black youths' contacts, but there is evidence of lower returns to Hispanic youths' contacts.     

The Role of Job Attributes in Understanding the Public-Private Wage Differential

This study uses a unique data set for Great Britain to investigate the impact of differences in job attributes on the public-private wage differential. The study reveals that (1) there are substantial differences in wage structure between the two sectors, particularly finding that the public-sector wage structure is less sensitive to differences in the attributes of jobs, and (2) differences in job attributes play in a major role in accounting for pay differences across sectors.     

The effects of integrated manufacturing on job characteristics

From a sample of 203 Spanish plants in all manufacturing sectors empirical results show that integrated manufacturing (IM) has a positive effect on job variety, job autonomy and job interdependence for production workers. It is also found that IM is associated with greater job complexity, this effect being mainly mediated by the three abovementioned job characteristics.     

A Disaggregate Analysis of the Evolution of Job Tenure in Britain, 1975–1993

We use data on 200,000 individuals to investigate changes in job tenure. We look at the age–tenure profile for different birth cohorts of workers and find little change for men and an improvement for women. We estimate probability models for two cuts of the tenure distribution. We find that, controlling for a set of age, demographic, educational, industrial and occupational characteristics, the proportion of workers in short jobs and longer jobs has the same path as in the aggregate (unconditional) analysis. Allowing for the effect of all these characteristics to vary with time uncovers no evidence of secular change.     

Homeownership Returns, Tenure Choice and Inflation

This paper empirically investigates the impact of inflation on homeownership returns and tenure choice when the assumptions underlying the user cost of housing are modified to reflect separately the effects of unanticipated and anticipated inflation. The analysis demonstrates that when the user cost model is specified to reflect the impact of anticipated inflation on house prices, the mortgage interest rate and the capitalization rate, the returns to homeownership are lower than determined by previous user cost studies and are consistent with a reasonably efficient market.