Job-Match Quality as an Error Component and the Wage-Tenure Profiler A Comparison and Test of Alternative Estimators
Bibliographic Data
| ID | 19417868 |
|---|---|
| Authors | John Garen (0000-0002-4641-8811, University of Kentucky, corresponding author), John E Garen |
| Year | 1989 |
| Volume | 7 |
| Issue | 2 |
| Pages | 245-252 |
| Publication date | 1989-04-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/07350015.1989.10509733 |
| OpenAlex | W2057918211 |
| Language | EN |
| References cited | 7 |
The job-matching hypothesis implies that the disturbance of the standard-wage equation is correlated with one of the regressors, tenure, causing an overestimation of the effect of tenure on wages. This hypothesis is tested and consistent estimates of wage-equation parameters obtained using the methods of Hausman (1978). The approach treats job-match quality as a component of the disturbance term, and an error-components estimator is compared to a modified fixed-effects estimator. The results reject the hypothesis of no correlation between the disturbance term and tenure, but the estimated value of the tenure effect is contrary to the matching model. Other models that may be consistent with these results are discussed
Econometrics · Economics · Estimator · Fixed effects model · Hausman test · Labour economics · Panel data · Statistics · Wage · Firm Innovation and Growth · Labor market dynamics and wage inequality · Mathematics · Retirement, Disability, and Employment
| Highly cited | No |
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