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| Job Tenure, Wages and Technology: A Reassessment Using Matched Worker-Firm Panel Data | |
 Abstract
This Paper presents new estimates of the impact of job tenure on wages using a new French matched worker-firm dataset. We develop an identification strategy that relies on one specific feature of the French labour laws. They stipulate that firms, when firing workers, must include as one of their criteria the number of dependent children of their employees. Our dataset confirms that workers with a relatively large number of dependent children at the entry in the firm are, ceteris paribus, less likely to be laid-off and have on average higher job tenure than their co-workers with a relatively small number of dependent children. Within this framework, the relative number of children at entry in the firm represents a plausibly valid instrumental variable for identifying the impact of job tenure on wages. Our new IV estimate of the return to job tenure (3.1% per year) is much larger than the OLS estimate (1%). This result holds true regardless of whether we focus on educated or no
Authors:
GIVORD, Pauline
& MAURIN, Eric
(2003)
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Job Tenure, Wages and Technology: A Reassessment Using Matched Worker-Firm Panel Data
http://ideas.repec.org/p/cpr/ceprdp/4147.html
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