Arbeitspapier
Dual Returns to Experience
In this paper we study human capital accumulation and wage trajectories of young workers in a dual labor market. Using rich administrative data for Spain, we follow workers since labor market entry to measure experience accumulated under different contractual arrangements and relate it to current wages. We show that returns to experience accumulated in fixed-term contracts are, on average, lower than the returns to experience acquired in permanent jobs. However, this gap masks significant heterogeneity across individuals. The gap in returns widens along the skill distribution, where workers in the upper tail have the largest difference in returns. Moreover, among equally experienced workers, higher incidence of temporary employment in the past is associated with substantially lower wages. Ultimately, heterogeneous returns to experience translate into significant changes in the position of workers along the distribution of wage growth after 15 years in the labor market, bearing implications for life-cycle wage inequality.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 14596
- Classification
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Wirtschaft
Wages, Compensation, and Labor Costs: General
Labor Contracts
Labor Turnover; Vacancies; Layoffs
- Subject
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human capital
labor market duality
earnings dynamics
- Event
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Geistige Schöpfung
- (who)
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Garcia-Louzao, Jose
Hospido, Laura
Ruggieri, Alessandro
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
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2021
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Garcia-Louzao, Jose
- Hospido, Laura
- Ruggieri, Alessandro
- Institute of Labor Economics (IZA)
Time of origin
- 2021
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Part-time work, fixed-term contracts, and the returns to experience
The Relative Returns to Education, Experience, and Attractiveness for Young Workers
Retrieving the Returns to Experience, Tenure, and Job Mobility from Work Histories
Retrieving the Returns to Experience, Tenure, and Job Mobility from Work Histories
Interfirm Mobility, Wages, and the Returns to Seniority and Experience in the U.S.
Estimating the Return to Training and Occupational Experience : The Case of Female Immigrants
Return Migration's Profile and Experience: Empirical Evidence from Bulgaria
Returns to Teaching Repetition - The Effect of Short-Term Teaching Experience on Student Outcomes
Dual Returns to Experience
Accounting for changing returns to experience
Estimating Returns to Schooling and Experience: A History of Thought
Estimating Returns to Schooling and Experience: A History of Thought
Part-time work, fixed-term contracts, and the returns to experience
The Relative Returns to Education, Experience, and Attractiveness for Young Workers
Retrieving the Returns to Experience, Tenure, and Job Mobility from Work Histories
Retrieving the Returns to Experience, Tenure, and Job Mobility from Work Histories
Interfirm Mobility, Wages, and the Returns to Seniority and Experience in the U.S.
Estimating the Return to Training and Occupational Experience : The Case of Female Immigrants
Return Migration's Profile and Experience: Empirical Evidence from Bulgaria