Klein, Tobias J.; Amann, R. - Tilburg University, Center for Economic Research - 2011
A regression of wages on firm tenure is likely to yield biased estimates of the returns to tenure because tenure and … tenure. In this paper, we propose to use instead an easy-to-implement control function estimator for the returns to tenure … amount of unobserved heterogeneity in the returns to tenure and that good job matches are characterized by higher returns to …