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Performance, seniority and wages : formal salary systems and individual earnings profiles

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dc.creator Dohmen, Thomas J.
dc.date 2003
dc.date.accessioned 2013-10-16T07:09:10Z
dc.date.available 2013-10-16T07:09:10Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20172
dc.identifier ppn:374500258
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20172
dc.description 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 cross-sectional wage regressions even though supervisors' evaluations shape life-cycle 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. Furthermore it demonstrates that formal salary systems cause serial correlation in wage growth and 'Green Card' effects.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 935
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject M52
dc.subject J31
dc.subject J30
dc.subject ddc:330
dc.subject formal salary systems
dc.subject returns to seniority
dc.subject internal labor markets
dc.subject personnel economics
dc.subject Vergütungssystem
dc.subject Betriebszugehörigkeit
dc.subject Interner Arbeitsmarkt
dc.subject Leistungsorientierte Vergütung
dc.subject Personalbeurteilung
dc.subject Luftfahrtindustrie
dc.subject Niederlande
dc.subject Koninklijke Nederlandse Vliegtuigenfabriek, Fokker Amsterdam
dc.title Performance, seniority and wages : formal salary systems and individual earnings profiles
dc.type doc-type:workingPaper


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