Wage, Tenure, and Wage Growth Variation within and across Establishments

Abstract

We estimate employer-specific wage, tenure, and wage growth differentials using a unique Bureau of Labor Statistics establishment survey of full-time, white-collar workers. Employer wage and tenure differentials, conditional on worker characteristics, are substantial in these data. Education, potential experience, and tenure are highly correlated within an establishment. High-wage establishments generally employ higher quality workers, and the most skilled men and professionals typically work with the most skilled women and nonprofessionals. There is significant variation in wage growth rates across employers, and high wage growth establishments tend to have longer tenure, all else equal.

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