Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27222 
Year of Publication: 
2009
Series/Report no.: 
Diskussionsbeitrag No. 413
Publisher: 
Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät, Hannover
Abstract: 
Human capital and deferred compensation might explain why firms employ but do not hire older workers. Adjustments of wage-tenure profiles for older new entrants are explored in the context of deferred compensation. From an equity theory perspective, such adjustments might lead to adverse incentive effects so that firms prefer to hire rather homogenous workers in terms of entry age. A personnel data set is analyzed which reveals that at least for white-collar workers entry age has a positive effect on entry wages and wage-tenure profiles are adjusted according to entry age.
Subjects: 
Deferred compensation
human capital
internal labor markets
older workers
wages
JEL: 
J14
J24
J31
J33
M51
M52
Document Type: 
Working Paper

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