The Structure of the Permanent Job Wage Premium: Evidence from Europe

Using individual longitudinal European Community Household Panel data for thirteen countries during 1995–2001 and fixed‐effects models, I find for men, the permanent job wage premium is higher for younger workers and those who were noncitizens or foreign born; for women, the premium is higher for young workers, short‐tenure workers, and those who were noncitizens or foreign born. Thus, the gain to permanent employment is higher for those with less experience in the domestic labor market.