Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51779
Brunner, Beatrice; Kuhn, Andreas (2010). The Impact of Labor Market Entry Conditions on Initial Job Assignment, Human Capital Accumulation, and Wages. Working paper series / Institute for Empirical Research in Economics No. 520, University of Zurich.
We estimate the effects of labor market entry conditions on wages for male individuals first entering the Austrian labor market between 1978 and 2000. We find a large negativ effect of unfavorable entry conditions on starting wages as well as a sizeable negative long-run effect. Specifically, we estimate that a one percentage point increase in the initial local unemployment rate is associated with an approximate shortfall in lifetime earnings of 6.5%. We also show that bad entry conditions are associated with lower quality of a worker's first job and that initial wage shortfalls associated with bad entry conditions only partially evaporate upon involuntary job change. These and additional findings support the view that initial job assignment, in combination with accumulation of occupation or industry-specific human capital while on this first job, plays a key role in generating the observed wage persistencies.
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics|
Working Paper Series > Institute for Empirical Research in Economics (former)
|JEL Classification:||E3, J2, J3, J6, M5|
|Deposited On:||29 Nov 2011 16:09|
|Last Modified:||09 Jul 2012 07:00|
|Series Name:||Working paper series / Institute for Empirical Research in Economics|
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