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1989•American Economic ReviewRequires access

Why Do Wages Increase with Tenure? On-the-Job Training and Life-Cycle Wage Growth Observed within Firms

James N. Brown

Open publisher page 211 citations

Abstract

Empirical results in this paper indicate that firm-specific wage growth occurs almost exclusively during periods of on-the-job training. This finding suggests that within-firm wage growth is mainly determined by contemporaneous productivity growth. The results provide no evidence that contractual considerations are an important source of firm-specific wage growth. Copyright 1989 by American Economic Association.

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What this paper is about

Empirical results in this paper indicate that firm-specific wage growth occurs almost exclusively during periods of on-the-job training. This finding suggests that within-firm wage growth is mainly determined by contemporaneous productivity growth. The results provide no evidence that contractual considerations are an important source of firm-specific wage growth. Copyright 1989 by American Economic Association.

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OpenAlex reports 211 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Empirical results in this paper indicate that firm-specific wage growth occurs almost exclusively during periods of on-the-job training. This finding suggests that within-firm wage growth is mainly determined by contemporaneous productivity growth. The results provide no evidence that contractual considerations are an important source of firm-specific wage growth. Copyright 1989 by American Economic Association.

Key concepts: Wage growth, Economics, Wage, Labour economics, Productivity, Efficiency wage, Macroeconomics

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