Working Paper: NBER ID: w1085
Authors: Katharine G. Abraham; James L. Medoff
Abstract: This paper presents a summary of the evidence which has recently been collected concerning the role of length of service in the operation of internal labor markets. It argues that these data are inconsistent with the human capital model of the experience-earnings and experience-layoff relationships. The paper concludes by asserting that if we are ever to fully understand the role of service, newdata are needed.
Keywords: internal labor markets; length of service; earnings differentials; human capital
JEL Codes: J31; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| length of service (C41) | earnings differentials (J31) |
| length of service (C41) | productivity (O49) |
| institutional factors (D02) | earnings (J31) |
| seniority provisions (H55) | earnings (J31) |
| service (L84) | earnings differentials (J31) |
| service (L84) | job security (J28) |