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Federal Reserve Bank of Chicago
Working Paper Series
The changing pattern of wage growth for low skilled workers
Eric French
Bhashkar Mazumder
Christopher Taber
Abstract

We examine the key components that determine an individual's early career wage growth and how these factors have changed for less skilled workers over the last twenty years. In particular, we examine the relative importance of accumulating work experience as compared to the quality of job matches in influencing wage growth. Our main finding is that over this period, the vast majority of the variation in wage growth is due to variability in the return to experience.


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Eric French & Bhashkar Mazumder & Christopher Taber, The changing pattern of wage growth for low skilled workers, Federal Reserve Bank of Chicago, Working Paper Series WP-05-24, 2005.
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Keywords: Wages ; Displaced workers
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