Effects of Wages on Job Tenure

  • Juha Kettunen


In this article, the effect of wages on the job tenure is studies using microeconomic data on industrial companies. The data cover a period of 11 years starting from the first quarter of 1980 and contain several pieces of information on workers, jobs, and companies. The models were estimated in a competing risk framework. According to the results the wage groups of the workers and relative wage within a company are positively related to the job tenure. These effects are larger among the persons who leave the industry than among the persons who find new industrial jobs. {Copyright 2001 Elsevier Science Inc. All rights reserved}.