DeVaro and Waldman 2012 DeVaro and Waldman 2012 JOLE. 1. Introduction � 2. Underlining framework DeVaro and ⊲ Waldman 2012 Asymmetric learning and firm-specific skill Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 7
DeVaro and Waldman 2012 DeVaro and Waldman 2012 JOLE. 1. Introduction � 2. Underlining framework A model of internal labor markets focusing on – DeVaro and ⊲ Waldman 2012 Asymmetric learning and firm-specific skill Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 7
DeVaro and Waldman 2012 DeVaro and Waldman 2012 JOLE. 1. Introduction � 2. Underlining framework A model of internal labor markets focusing on – DeVaro and ⊲ Waldman 2012 Employer learning asymmetric between current and Asymmetric learning ⊲ and firm-specific skill potential employers. Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 7
DeVaro and Waldman 2012 DeVaro and Waldman 2012 JOLE. 1. Introduction � 2. Underlining framework A model of internal labor markets focusing on – DeVaro and ⊲ Waldman 2012 Employer learning asymmetric between current and Asymmetric learning ⊲ and firm-specific skill potential employers. Transformation of the Japanese steel industry Firm-specific skill acquisition as well as general skill ⊲ 3. Existence of an acquisition. internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 7
Asymmetric learning and firm-specific skill 1. Introduction 2. Underlining framework DeVaro and Waldman 2012 Asymmetric learning and ⊲ firm-specific skill Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework DeVaro and Waldman 2012 Asymmetric learning and ⊲ firm-specific skill Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of the Japanese steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with – 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with controlling for, – 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with controlling for, – 5. Discussion exogenous shocks, ⊲ Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with controlling for, – 5. Discussion exogenous shocks, with consideration of possible ⊲ insurance function of internal labor markets (Beaudry and DiNardo 1991 JPE). Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with controlling for, – 5. Discussion exogenous shocks, with consideration of possible ⊲ insurance function of internal labor markets (Beaudry and DiNardo 1991 JPE). return on task-specific skill, ⊲ Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Asymmetric learning and firm-specific skill A lemma deduced from DeVaro and Waldman 2012. 1. Introduction � 2. Underlining framework If employer learning is asymmetric and return on – DeVaro and Waldman 2012 firm-specific skill is strictly positive, cohort effects are Asymmetric learning and persistent ( Lemma 1 ). ⊲ firm-specific skill Transformation of Internal labor markets consisting of asymmetric learning – the Japanese steel industry and firm-specific skill acquisition. 3. Existence of an internal labor market 4. Wage growth in Testing existence of internal labor markets. � the internal labor market Cohort effects with controlling for, – 5. Discussion exogenous shocks, with consideration of possible ⊲ insurance function of internal labor markets (Beaudry and DiNardo 1991 JPE). return on task-specific skill, which also generates ⊲ cohort effects (Gibbons and Waldman 2006 JOLE). Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 8
Transformation of the Japanese steel industry 1. Introduction 2. Underlining framework DeVaro and Waldman 2012 Asymmetric learning and firm-specific skill Transformation of the Japanese ⊲ steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 9
Transformation of the Japanese steel industry Japanese manufacturing began to form internal labor 1. Introduction � 2. Underlining markets in the 1920s, as in the US. framework DeVaro and Waldman 2012 Asymmetric learning and firm-specific skill Transformation of the Japanese ⊲ steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 9
Transformation of the Japanese steel industry Japanese manufacturing began to form internal labor 1. Introduction � 2. Underlining markets in the 1920s, as in the US. framework DeVaro and Waldman 2012 Technology-skill/education complementary development � Asymmetric learning and firm-specific skill (Goldin and Katz 2008) from the 1950s, as the steel industry Transformation of the Japanese experienced massive modernization investment. ⊲ steel industry 3. Existence of an internal labor market 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 9
Transformation of the Japanese steel industry Japanese manufacturing began to form internal labor 1. Introduction � 2. Underlining markets in the 1920s, as in the US. framework DeVaro and Waldman 2012 Technology-skill/education complementary development � Asymmetric learning and firm-specific skill (Goldin and Katz 2008) from the 1950s, as the steel industry Transformation of the Japanese experienced massive modernization investment. ⊲ steel industry 3. Existence of an Systematic production lines required general cognitive – internal labor market skills and understandings of firm-specific systems. 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 9
Transformation of the Japanese steel industry Japanese manufacturing began to form internal labor 1. Introduction � 2. Underlining markets in the 1920s, as in the US. framework DeVaro and Waldman 2012 Technology-skill/education complementary development � Asymmetric learning and firm-specific skill (Goldin and Katz 2008) from the 1950s, as the steel industry Transformation of the Japanese experienced massive modernization investment. ⊲ steel industry 3. Existence of an Systematic production lines required general cognitive – internal labor market skills and understandings of firm-specific systems. 4. Wage growth in the internal labor market Seeking better educated workers, and enhancing internal – 5. Discussion labor markets from the 1950s. Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 9
1. Introduction 2. Underlining framework 3. Existence of an internal labor ⊲ market Case establishment and data Existence of internal labor market and its change 3. Existence of an internal labor market Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 10
Case establishment and data This research uses original wage records of 1557 workers who 1. Introduction � 2. Underlining joined the case iron works from 1928 to 1967 and were framework relocated to another iron works in the late 1960s. 3. Existence of an internal labor market Case establishment ⊲ and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 11
Case establishment and data This research uses original wage records of 1557 workers who 1. Introduction � 2. Underlining joined the case iron works from 1928 to 1967 and were framework relocated to another iron works in the late 1960s. 3. Existence of an internal labor market Case Schooling and physiological characteristics when – establishment ⊲ and data recruited, previous career experiences, and panel data of Existence of internal labor market and its wage, job assignments, promotion, family composition, change Existence, cont and clinical history are included. Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 11
Case establishment and data This research uses original wage records of 1557 workers who 1. Introduction � 2. Underlining joined the case iron works from 1928 to 1967 and were framework relocated to another iron works in the late 1960s. 3. Existence of an internal labor market Case Schooling and physiological characteristics when – establishment ⊲ and data recruited, previous career experiences, and panel data of Existence of internal labor market and its wage, job assignments, promotion, family composition, change Existence, cont and clinical history are included. Existence, cont Existence, cont Composition of cohorts ( Table 1 ). – Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 11
Case establishment and data This research uses original wage records of 1557 workers who 1. Introduction � 2. Underlining joined the case iron works from 1928 to 1967 and were framework relocated to another iron works in the late 1960s. 3. Existence of an internal labor market Case Schooling and physiological characteristics when – establishment ⊲ and data recruited, previous career experiences, and panel data of Existence of internal labor market and its wage, job assignments, promotion, family composition, change Existence, cont and clinical history are included. Existence, cont Existence, cont Composition of cohorts ( Table 1 ). – Existence, cont Existence, cont Several years of previous work experience on average, ⊲ 4. Wage growth in the internal labor in contrast to contemporary major Japanese firms. market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 11
Existence of internal labor market and its change 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its ⊲ change Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 12
Existence of internal labor market and its change Indicators of internal labor markets. 1. Introduction � 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its ⊲ change Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 12
Existence of internal labor market and its change Indicators of internal labor markets. 1. Introduction � 2. Underlining framework Persistent cohort effects, – 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its ⊲ change Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 12
Existence of internal labor market and its change Indicators of internal labor markets. 1. Introduction � 2. Underlining framework Persistent cohort effects, with controlling for – 3. Existence of an industry-/job- specific skills and GNE growth rate internal labor market Case establishment ( Lemma 1 ). and data Existence of internal labor market and its ⊲ change Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 12
Existence, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change ⊲ Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change ⊲ Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change ⊲ Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal labor market and its change ⊲ Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) ⊲ Existence, cont Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) and with the previous same job ⊲ Existence, cont dummy ( pre × jbs ), Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) and with the previous same job ⊲ Existence, cont dummy ( pre × jbs ), Existence, cont Existence, cont Existence, cont tenure at the case firm ( ten ), – Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) and with the previous same job ⊲ Existence, cont dummy ( pre × jbs ), Existence, cont Existence, cont Existence, cont tenure at the case firm ( ten ), – Existence, cont 4. Wage growth in 2-year joined dummies ( yj1928 − 1929 , yj1930 − 1931 , – the internal labor market ...), 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) and with the previous same job ⊲ Existence, cont dummy ( pre × jbs ), Existence, cont Existence, cont Existence, cont tenure at the case firm ( ten ), – Existence, cont 4. Wage growth in 2-year joined dummies ( yj1928 − 1929 , yj1930 − 1931 , – the internal labor market ...), 5. Discussion ten × yj19XX , – Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction Table 2 : Regression of real wage ( rw ) on � 2. Underlining framework years of schooling ( S ), – 3. Existence of an internal labor market previous work experience ( pre ), – Case establishment and data Existence of internal interactions of pre with the previous same industry – labor market and its change dummy ( pre × ibs ) and with the previous same job ⊲ Existence, cont dummy ( pre × jbs ), Existence, cont Existence, cont Existence, cont tenure at the case firm ( ten ), – Existence, cont 4. Wage growth in 2-year joined dummies ( yj1928 − 1929 , yj1930 − 1931 , – the internal labor market ...), 5. Discussion ten × yj19XX , – with controlling for year dummies and growth rate of – GNE ( ∆rgne ). Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 13
Existence, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont ⊲ Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 14
Existence, cont Table 2 , cont. 1. Introduction � 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont ⊲ Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 14
Existence, cont Table 2 , cont. 1. Introduction � 2. Underlining framework Cohort effects survive in all cohorts (model 2-1 in Table – 3. Existence of an 2 ). internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont ⊲ Existence, cont Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 14
Table 2 Effect of cohort and tenure 2-1 Estimation method panel least squares Dependent variable log(rw) Cross-section pooled (no control) Independent variables coefficient t statistic *** c 1.0259 58.5498 *** log( S ) 0.0793 20.2840 *** log(pre) 0.0783 87.8428 *** log(pem)×ibs 0.0113 12.4031 *** log(pem)×jbs 0.0192 18.4178 *** log(ten) 0.1068 48.8122 *** yj1930-1931 -0.0664 -3.1110 *** yj1932-1933 -0.0688 -4.2581 *** yj1934-1935 -0.1416 -10.1613 *** yj1936-1937 -0.1701 -12.6437 *** yj1938-1939 -0.1824 -14.2604 *** yj1940-1941 -0.2369 -18.5503 *** yj1942-1943 -0.3011 -23.2736 *** yj1944-1945 -0.3656 -27.9614 *** yj1946-1947 -0.4000 -29.8086 *** yj1948-1949 -0.4677 -35.9202 *** yj1950-1951 -0.5401 -40.4203 *** yj1952-1953 -0.6091 -42.1070 *** yj1954-1955 -0.6373 -44.5672 *** yj1956-1957 -0.7695 -55.2790 *** yj1958-1959 -0.8536 -59.3754 *** yj1960-1961 -0.9041 -60.3538 *** yj1962-1963 -0.9470 -61.7582 *** yj1964-1965 -0.8564 -49.7182 *** yj1966-1967 -0.9392 -43.0552 year dummies yes Δ rgne yes
Existence, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont ⊲ Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 15
Existence, cont 1. Introduction Wage residuals ([[ observed real wage (rw)] − [ real wage � 2. Underlining estimated from observables with models 3-1 and 3-3 in framework Table 3 (E[rw])]]) reject panel unit root tests: 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont ⊲ Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 15
Existence, cont 1. Introduction Wage residuals ([[ observed real wage (rw)] − [ real wage � 2. Underlining estimated from observables with models 3-1 and 3-3 in framework Table 3 (E[rw])]]) reject panel unit root tests: 3. Existence of an internal labor market Case establishment The firm’s evaluation of unobservable ability of each – and data Existence of internal worker converged to a unique fixed point. labor market and its change Existence, cont Existence, cont ⊲ Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 15
Existence, cont 1. Introduction Wage residuals ([[ observed real wage (rw)] − [ real wage � 2. Underlining estimated from observables with models 3-1 and 3-3 in framework Table 3 (E[rw])]]) reject panel unit root tests: 3. Existence of an internal labor market Case establishment The firm’s evaluation of unobservable ability of each – and data Existence of internal worker converged to a unique fixed point. labor market and its change Existence, cont Toward the true abilities, the firm was learning. – Existence, cont ⊲ Existence, cont Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 15
Existence, cont 1. Introduction Wage residuals ([[ observed real wage (rw)] − [ real wage � 2. Underlining estimated from observables with models 3-1 and 3-3 in framework Table 3 (E[rw])]]) reject panel unit root tests: 3. Existence of an internal labor market Case establishment The firm’s evaluation of unobservable ability of each – and data Existence of internal worker converged to a unique fixed point. labor market and its change Existence, cont Toward the true abilities, the firm was learning. – Existence, cont ⊲ Existence, cont “Predictable winners and losers” (Baker et al 1994 QJE). – Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 15
Existence, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont ⊲ Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 16
Existence, cont 1. Introduction Wage profiles: Maximum ( Figure 1 ), medium ( Figure 2 ), � 2. Underlining and minimum ( Figure 3 ) in cohorts. framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont ⊲ Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 16
Daily y real wage in 19 955 price 10 12 14 0 2 4 6 8 8 1929 1930 1931 1932 1933 Figure 1 Wage curves of two consectuve cohort year groups: 1934 1935 1936 1937 1938 1939 1940 1941 Mean in each calender year 1942 1943 1944 1945 1946 1947 1948 year 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
Real da aily wage in 1955 price 10 12 14 0 2 4 6 8 1929 1930 1931 1932 1933 Figure 2 Wage curves of two consecutive cohort year groups: 1934 1935 1936 1937 1938 1939 1940 Maximum in each calender yeaar 1941 1942 1943 1944 1945 1946 1947 1948 year 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
Real daily wage in 195 55 price 10 12 14 14 0 0 2 4 6 8 1929 1930 1931 1932 1933 Figure 3 Wage curves of two consecutive cohort year groups: 1934 1935 1936 1937 1938 1939 1940 Minimum in each calender year 1941 1942 1943 1944 1945 1946 1947 1948 year 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969
Existence, cont 1. Introduction Wage profiles: Maximum ( Figure 1 ), medium ( Figure 2 ), � 2. Underlining and minimum ( Figure 3 ) in cohorts. framework 3. Existence of an “Predictable winners and losers” shown in suppressed – internal labor market Case establishment wages of “losers”. and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont ⊲ Existence, cont Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 16
Existence, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont Existence, cont ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an internal labor market Case establishment and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont Existence, cont ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Table 2 Effect of cohort and tenure, cont. 2-2 Estimation method panel least squares Dependent variable log(rw) Cross-section pooled (no control) Independent variables coefficient t statistic *** c 1.2552 58.1633 *** log( S ) 0.0793 20.8082 *** log(pre) 0.0787 90.4507 *** log(pre)×ibs 0.0112 12.6312 *** log(pre)×jbs 0.0188 18.5190 *** log(ten) 0.0292 6.5046 yj1930-1931×log(ten) -0.0031 -1.4496 *** yj1932-1933×log(ten) 0.0060 4.6278 *** yj1934-1935×log(ten) 0.0044 4.5885 *** yj1936-1937×log(ten) 0.0062 7.2346 *** yj1938-1939×log(ten) 0.0084 11.2656 *** yj1940-1941×log(ten) 0.0101 13.4014 *** yj1942-1943×log(ten) 0.0149 17.9592 *** yj1944-1945×log(ten) 0.0200 23.1121 *** yj1946-1947×log(ten) 0.0249 26.4728 *** yj1948-1949×log(ten) 0.0151 16.8488 *** yj1950-1951×log(ten) 0.0197 17.9671 *** yj1952-1953×log(ten) 0.0216 12.4854 *** yj1954-1955×log(ten) 0.0259 15.1794 *** yj1956-1957×log(ten) 0.0259 17.3393 *** yj1958-1959×log(ten) 0.0320 16.1331 *** yj1960-1961×log(ten) 0.0415 14.1824 *** yj1962-1963×log(ten) 0.0342 9.1698 *** yj1964-1965×log(ten) 0.0439 6.4691 * yj1966-1967×log(ten) 0.0295 1.7782 year dummies yes year joined dummies yes Δ rgnp yes
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an Increasing return on firm-specific human capital, with – internal labor market Case establishment controlling for and data Existence of internal labor market and its change Existence, cont Existence, cont Existence, cont Existence, cont ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an Increasing return on firm-specific human capital, with – internal labor market Case establishment controlling for and data Existence of internal labor market and its GNE growth rate ( ∆rgne ), change ⊲ Existence, cont Existence, cont Existence, cont Existence, cont ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an Increasing return on firm-specific human capital, with – internal labor market Case establishment controlling for and data Existence of internal labor market and its GNE growth rate ( ∆rgne ), change ⊲ Existence, cont cohort effects ( yj19XX ), Existence, cont ⊲ Existence, cont Existence, cont ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an Increasing return on firm-specific human capital, with – internal labor market Case establishment controlling for and data Existence of internal labor market and its GNE growth rate ( ∆rgne ), change ⊲ Existence, cont cohort effects ( yj19XX ), Existence, cont ⊲ Existence, cont Existence, cont schooling as general human capital ( S ), ⊲ ⊲ Existence, cont 4. Wage growth in the internal labor market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
Existence, cont 1. Introduction Increasing coefficient of tenure ( ten ) as cohorts come down � 2. Underlining in model 2-2, Table 2 . framework 3. Existence of an Increasing return on firm-specific human capital, with – internal labor market Case establishment controlling for and data Existence of internal labor market and its GNE growth rate ( ∆rgne ), change ⊲ Existence, cont cohort effects ( yj19XX ), Existence, cont ⊲ Existence, cont Existence, cont schooling as general human capital ( S ), ⊲ ⊲ Existence, cont and industry-/task- specific skills acquired prior to 4. Wage growth in ⊲ the internal labor joining the case firm ( pre × ibs , pre × jbs ). market 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 17
1. Introduction 2. Underlining framework 3. Existence of an internal labor market 4. Wage growth in the internal ⊲ labor market Skill, wage and reproduction 4. Wage growth in the internal labor market Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 18
Skill, wage and reproduction 1. Introduction 2. Underlining framework 3. Existence of an internal labor market 4. Wage growth in the internal labor market Skill, wage and ⊲ reproduction Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an internal labor market 4. Wage growth in the internal labor market Skill, wage and ⊲ reproduction Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an height ( hgt ), years of schooling ( S ), – internal labor market 4. Wage growth in the internal labor market Skill, wage and ⊲ reproduction Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an height ( hgt ), years of schooling ( S ), – internal labor market 4. Wage growth in previous work experience ( pre ) and previous employment the internal labor – market ( pem ), Skill, wage and ⊲ reproduction Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an height ( hgt ), years of schooling ( S ), – internal labor market 4. Wage growth in previous work experience ( pre ) and previous employment the internal labor – market ( pem ), Skill, wage and ⊲ reproduction Skill, cont the same previous industry dummy ( ibs × pem ) and the – Reproduction Schooling and career same previous job dummy ( jbs × pem ), experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an height ( hgt ), years of schooling ( S ), – internal labor market 4. Wage growth in previous work experience ( pre ) and previous employment the internal labor – market ( pem ), Skill, wage and ⊲ reproduction Skill, cont the same previous industry dummy ( ibs × pem ) and the – Reproduction Schooling and career same previous job dummy ( jbs × pem ), experiences Schooling, cont tenure ( ten ), – Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, wage and reproduction 1. Introduction Impact of human capital investment ( Table 3 ): Regression � 2. Underlining of real wage ( rw ) on framework 3. Existence of an height ( hgt ), years of schooling ( S ), – internal labor market 4. Wage growth in previous work experience ( pre ) and previous employment the internal labor – market ( pem ), Skill, wage and ⊲ reproduction Skill, cont the same previous industry dummy ( ibs × pem ) and the – Reproduction Schooling and career same previous job dummy ( jbs × pem ), experiences Schooling, cont tenure ( ten ), – Schooling, cont Schooling, cont in-house training program dummies ( dcy : 1927-1935, sy : – Return on schooling Return on career 1935-1947, dct : 1939-1946, dc : 1946-1973), dcy × ten , experiences sy × ten , dct × ten , dc × ten . 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 19
Skill, cont 1. Introduction 2. Underlining framework 3. Existence of an internal labor market 4. Wage growth in the internal labor market Skill, wage and reproduction ⊲ Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Skill, cont 1. Introduction Impact of human capital investment ( Table 3 ), cont. � 2. Underlining framework 3. Existence of an internal labor market 4. Wage growth in the internal labor market Skill, wage and reproduction ⊲ Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Table 3 Wage regression 3-1 3-2 Estimation method panel extended generalized least squares Dependent variable log(rw) log(rw) Cross-section random effect random effect Period (year) pooled (no control) pooled (no control) Independent variables coefficient coefficient t statistic t statistic *** *** c -5.1929 -90.3758 -5.1849 -90.5617 *** *** log(age) 1.5966 83.4939 1.5866 82.8477 *** *** log( S ) 0.1261 8.0918 0.1353 8.7012 *** *** log( S )×psw 0.1926 56.1371 0.1868 54.2152 *** *** log(pre) -0.0649 -13.5960 -0.0658 -13.8355 *** *** log(pem) 0.0093 2.6088 0.0084 1.9813 *** log(pem)×ibs 0.0316 7.8710 *** log(pem)×jbs -0.0432 -9.9478 *** *** log(ten) 0.3013 53.8670 0.3051 54.4364 *** *** dcy -1.1508 -2.7924 -1.1462 -2.7821 *** *** dcy×log(ten) 0.3935 2.7183 0.3934 2.7177 *** *** sy -0.3313 -8.2417 -0.3457 -8.6061 *** *** sy×log(ten) 0.1034 6.7614 0.1052 6.8851 *** *** dct -0.3483 -9.4918 -0.3581 -9.7508 *** *** dct×log(ten) 0.1125 8.0721 0.1141 8.1829 *** *** dc 0.4271 22.6746 0.4412 23.4141 *** *** dc×log(ten) -0.1500 -17.1910 -0.1539 -17.6580
Table 3 Wage regression, cont. 3-3 3-4 Estimation method panel extended generalized least squares Dependent variable log(rw) log(rw) Cross-section random effect random effect Period (year) pooled (no control) pooled (no control) Independent variables coefficient coefficient t statistic t statistic *** *** c -4.9152 -79.9421 -4.9043 -80.1085 *** *** log(hgt) 0.5825 8.2301 0.5631 8.0003 *** *** log(age) 1.5772 75.9297 1.5690 75.4308 log( S ) 0.0015 0.0897 0.0087 0.5040 *** *** log( S )×psw 0.2294 67.6927 0.2248 65.9329 *** *** log(pre) -0.0787 -13.5901 -0.0787 -13.6572 *** *** log(pem) -0.0196 -4.8360 -0.0249 -5.2098 *** log(pem)×ibs 0.0319 7.3004 *** log(pem)×jbs -0.0381 -7.9866 *** *** log(ten) 0.3807 68.7515 0.3831 69.0893
Skill, cont 1. Introduction Impact of human capital investment ( Table 3 ), cont. � 2. Underlining framework Positive impact of general human capital: – 3. Existence of an internal labor market 4. Wage growth in the internal labor market Skill, wage and reproduction ⊲ Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Skill, cont 1. Introduction Impact of human capital investment ( Table 3 ), cont. � 2. Underlining framework Positive impact of general human capital: – 3. Existence of an internal labor market hgt , S , pre . ⊲ 4. Wage growth in the internal labor market Skill, wage and reproduction ⊲ Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Skill, cont 1. Introduction Impact of human capital investment ( Table 3 ), cont. � 2. Underlining framework Positive impact of general human capital: – 3. Existence of an internal labor market hgt , S , pre . ⊲ 4. Wage growth in the internal labor market Industry-specificity did matter. – Skill, wage and reproduction ⊲ Skill, cont Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Skill, cont 1. Introduction Impact of human capital investment ( Table 3 ), cont. � 2. Underlining framework Positive impact of general human capital: – 3. Existence of an internal labor market hgt , S , pre . ⊲ 4. Wage growth in the internal labor market Industry-specificity did matter. – Skill, wage and reproduction ⊲ Skill, cont ibs × pem . ⊲ Reproduction Schooling and career experiences Schooling, cont Schooling, cont Schooling, cont Return on schooling Return on career experiences 5. Discussion Career Experiences Replaced GRIPS Seminar in Economics, May 8, 2013 – slide 20
Recommend
More recommend
