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Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: The impact of labor market entry conditions on initial job assignment and wages
Authors: Brunner, Beatrice
Kuhn, Andreas
DOI: 10.21256/zhaw-3329
Published in: Journal of Population Economics
Volume(Issue): 27
Issue: 3
Pages: 705
Pages to: 738
Issue Date: 2013
Publisher / Ed. Institution: Springer
ISSN: 0933-1433
Language: English
Subjects: Initial labor market condition; Endogenous labor market entry; Initial job assignment
Subject (DDC): 331: Labor economics
Abstract: 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 negative effect of unfavorable entry conditions on starting wages and a sizable negative long-run effect. Our preferred estimates imply a decrease in starting wages by about 0.9 % and a lifetime loss in wages of about 1.3 % for an increase in the initial local unemployment rate by one percentage point. We show that poor entry conditions are associated with lower quality of a worker’s first employer and that the quality of workers’ first employer explains as much as three-quarters of the observed long-run wage effects resulting from poor entry conditions. Moreover, wage effects are much more persistent for blue-collar workers because some of them appear to be permanently locked in into low-paying jobs/tasks.
Further description: Erworben im Rahmen der Schweizer Nationallizenzen (
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Restricted until: 2019-07-31
Departement: School of Management and Law
Organisational Unit: Winterthur Institute of Health Economics (WIG)
Appears in Collections:Publikationen School of Management and Law

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