Work Experience, Job Tenure, Job Separation, and Wage Growth

Lee A. Lillard


This paper uses the precise dating of job changes and the panel data on wages within jobs in the NLSY to explore their implications for a number of leading theories of job change and wage growth, especially the relationships between general work experience, job tenure, job change and wages. Wages and job change are modeled jointly to incorporate the potential endogeneity of job tenure. The estimates indicate a significant effect of job tenure on wages and the hazard of job separation, as well as evidence of returns to job search, job turnover due to match quality, and job specific human capital investments.