Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Seniority, Wages and Productivity: A Turbulent Decade
Journal of Economic Perspectives
(pp. 49–64)
(Complimentary)
Abstract
Why does a worker's wage tend to grow with seniority in the firm, and what does this have to do with productivity? Two decades ago, neoclassical labor economists thought that the theory of human capital provided a good answer to this question. The last decade has, however, been one of puzzles and doubt. At this point few would give an unambiguous answer. This paper provides a tour of key points in the ongoing debate over the relationship between seniority, wages, and productivity.Citation
Hutchens, Robert M. 1989. "Seniority, Wages and Productivity: A Turbulent Decade." Journal of Economic Perspectives 3 (4): 49–64. DOI: 10.1257/jep.3.4.49JEL Classification
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 Retirement; Retirement Policies
- J31 Wage Level and Structure; Wage Differentials
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J63 Labor Turnover; Vacancies; Layoffs