Performance, Seniority and Wages : Formal Salary Systems and Individual Earnings Profiles

This paper replicates studies by Medoff and Abraham (1980, 1981) and Flabbi and Ichino (2001) using personnel data from the Dutch national aircraft manufacturer Fokker. It shows how a formal salary system, as is widely used by large firms, brings about that seniority-wage profiles are largely independent of controls for reported performance in cross-sectional wage regressions even though supervisors' evaluations shape life-cycle earnings profiles. Performance ratings determine how fast a worker climbs the firm's career and wage ladder. The paper also reveals that real wage growth depends on the employer's prosperity. Furthermore it demonstrates that formal salary systems cause serial correlation in wage growth and 'Green Card' effects

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Year of publication:	[2021]
Authors:	Dohmen, Thomas J.
Publisher:	[S.l.] : SSRN
Subject:	Leistungsentgelt \| Performance pay \| Vergütungssystem \| Compensation system \| Betriebszugehörigkeit \| Job tenure \| Niederlande \| Netherlands \| Luftfahrtindustrie \| Aerospace industry \| Personalbeurteilung \| Employee appraisal \| Interner Arbeitsmarkt \| Internal labour market \| Lohn \| Wages

Extent:	1 Online-Ressource (35 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2003 erstellt
Other identifiers:	10.2139/ssrn.473592 [DOI]
Classification:	M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs) ; J30 - Wages, Compensation, and Labor Costs. General ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013319630