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Title: Learning and Wage Dynamics
Resulting in 1 citation.
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Farber, Henry S. Gibbons, Robert |
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Learning and Wage Dynamics Quarterly Journal of Economics 111,4 (November 1996): 1007-1047. Also: http://qje.oxfordjournals.org/content/111/4/1007.abstract Cohort(s): NLSY79 Publisher: Wiley Online Keyword(s): Benefits, Fringe; Human Capital; Job Tenure; Job Training; Labor Economics; Labor Market, Secondary; Modeling; Schooling; Test Scores/Test theory/IRT; Training, Occupational; Training, On-the-Job; Wage Differentials; Wage Levels Permission to reprint the abstract has not been received from the publisher. The authors develop a dynamic model of learning about worker ability in a competitive labor market. The model produces three testable implications regarding wage dynamics: (1) although the role of schooling in the labor market's inference process declines as performance observations accumulate, the estimated effect of schooling on the level of wages is independent of labor-market experience; (2) time invariant variables correlated with ability but unobserved by employers (such as certain test scores) are increasingly correlated with wages as experience increases; and (3) wage residuals are a martingale. The authors present evidence from the National Longitudinal Survey of Youth that is broadly consistent with the model's predictions. |
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Bibliography Citation
Farber, Henry S. and Robert Gibbons. "Learning and Wage Dynamics." Quarterly Journal of Economics 111,4 (November 1996): 1007-1047.
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