Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20986
Authors: 
Bauer, Thomas K.
Haisken-DeNew, John P.
Year of Publication: 
2000
Series/Report no.: 
IZA Discussion paper series 146
Abstract: 
We examine the dynamic role of education and experience as determinants of wages. It is hypothesized that an employee's education is an important signal to the employer initially. Over time, the returns to schooling should decrease with labor market experience and increase with initially unobserved ability, since the employer gradually obtains better information on the productivity of an employee. Replicating US studies using data from a large German panel data set (GSOEP), we find no evidence for the employer learning hypothesis for Germany. Differentiating blue-collar and white-collar workers and estimating quantile regressions, however, leads to the conclusion that employer learning takes place for blue-collar workers at the lower end of the wage distribution. We further show, that information on the productivity of an employee is to a large extend private.
Subjects: 
Employer learning
returns to education
tenure
experience
on-the-job training
JEL: 
J21
J31
J24
Document Type: 
Working Paper

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