Performance , Seniority , and Wages : Formal Salary Systems and Individual Earnings Profiles ∗
نویسنده
چکیده
This paper replicates studies by Medoff and Abraham (1980, 1981) and Flabbi and Ichino (2001) using personnel data from the Dutch national aircraft manufacturer Fokker. It shows how a formal salary system, as is widely used by large firms, brings about that seniority-wage profiles are largely independent of controls for reported performance in crosssectional wage regressions even though supervisors’ evaluations shape lifecycle earnings profiles. Performance ratings determine how fast a worker climbs the firm’s career and wage ladder. The paper also reveals that real wage growth depends on the employer’s prosperity, and it demonstrates that formal salary systems cause serial correlation in wage growth and “Green Card” effects.
منابع مشابه
Earnings and Welfare after Downsizing: Central Bank Employees in Ecuador
This article measures the earnings and welfare losses experienced by displaced employees of the Central Bank of Ecuador. It links these losses to individual characteristics such as gender, education, seniority, and salary in the public sector. Data are from a survey of displaced employees that included subjective evaluations of well-being in addition to information on activity and earnings. The...
متن کاملDo Long - Tenure Workers Have Special Problems Following Job Displacement ?
This article examines whether the adjustment problems that follow job displacement become more severe as preseparation tenure increases. Recent research using nationally representative samples generally finds that the independent effect of seniority is quite weak and is dwarfed by other factors such as ethnicity, gender, or regional economic conditions. There is some evidence that persons with ...
متن کاملProtection against income loss during the first 6 months of illness or injury.
This note has reviewed the protection of workers against income loss during the first 6 months of illness or injury. The national income loss due to short-term sickness and disability during the first 6 months of illness, as expressed by pre-tax wages, was about $69.6 billion in 1991. Of this amount, about $46.5 billion (66.8 percent) was replaced by income-protection programs, including paid s...
متن کاملHuman capital revisited: the role of experience and education when controlling for performance and cognitive skills
Human capital theory predicts that differences in wages arise because of differences in human capital. The latter can be accumulated in two ways: through experience and education. Using matched firm worker data for the Ghanaian Manufacturing sector we test whether changes in wages over the life cycle reflect changes in performance, following the methodology of Medoff and Abraham (1980, 1981), a...
متن کاملSalary Distribution and Performance: Evidence from the National Hockey League
This study examines the relationship between salary distribution and performance using the four most recent completed seasons of the National Hockey League (NHL). The first approach pursues the effect of salary inequality on team performance using end-of-season team outcomes. The second approach focuses on the relationships between salary inequality and the distribution of individual performanc...
متن کامل