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A Test of Adverse Selection in the Market for Experienced Workers / Kevin Lang, Russell Weinstein.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Lang, Kevin.
Contributor:
National Bureau of Economic Research.
Weinstein, Russell.
Series:
Working Paper Series (National Bureau of Economic Research) no. w22387.
NBER working paper series no. w22387
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
We show that in labor market models with adverse selection, otherwise observationally equivalent workers will experience less wage growth following a period in which they change jobs than following a period in which they do not. We find little or no evidence to support this prediction. In most specifications the coefficient has the opposite sign, sometimes statistically significantly so. When consistent with the prediction, the estimated effects are small and statistically insignificant. We consistently reject large effects in the predicted direction. We argue informally that our results are also problematic for a broader class of models of competitive labor markets.
Notes:
Print version record
July 2016.

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