Turnover falls with tenure ¡ª this is one of the best established empirical regularities of labor economics ¡ª but finding a tenure effect on wages seems to be very hard. Within-job wage cuts do not seem very uncommon either. We reconcile these findings by revisiting an old question: how...

A large fraction of the variation in wage levels and wage growth rates among individuals remains unexplained. Economists argue that unobservedʺ heterogeneity is among the more likely reasons for this unexplained variation in wages. The source of individual heterogeneity is typically attributed...

Time preference is a key determinant of occupational choice and investments in human capital. Since careers are characterized by different wage growth prospects, individual discount rates play an important role in the relative valuation of jobs or occupations. We predict that individuals with...

Referrals can impact screening and self-selection of applicants during the hiring process. We model and estimate how referral information affects the selection of employees through job offers, acceptances, and turnover. Using rich data from a call center company, we show that referrals help...

A large fraction of the variation in wage levels and wage growth rates among individuals remains unexplained. Economists argue that "unobserved" heterogeneity is among the more likely reasons for this unexplained variation in wages. The source of individual heterogeneity is typically attributed...

The discount rate is a key determinant of investments in human capital and occupational choice. Individuals who are less future oriented - i.e. have a higher discount rate - are less likely to invest in human capital and hence more likely to select into careers with lower and flatter earnings...