The changing pattern of wage growth for low skilled workers

E French, B Mazumder, C Taber - 2005 - papers.ssrn.com
2005papers.ssrn.com
We examine the key components that determine an individual's early career wage growth
and how these factors have changed for less skilled workers over the last twenty years. In
particular, we examine the relative importance of accumulating work experience as
compared to the quality of job matches in influencing wage growth. Our main finding is that
over this period, the vast majority of the variation in wage growth is due to variability in the
return to experience.
Abstract
We examine the key components that determine an individual's early career wage growth and how these factors have changed for less skilled workers over the last twenty years. In particular, we examine the relative importance of accumulating work experience as compared to the quality of job matches in influencing wage growth. Our main finding is that over this period, the vast majority of the variation in wage growth is due to variability in the return to experience.
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