Earnings Instability and Tenure

@inproceedings{Cappellari2006EarningsIA,
  title={Earnings Instability and Tenure},
  author={Lorenzo Cappellari and Marco Leonardi},
  year={2006}
}
Earnings Instability and Tenure This paper develops a tractable empirical approach to estimate the effect of on-the-job tenure on the permanent and the transitory variance of earnings. The model is also used to evaluate earnings instability associated with fixed-term contracts (short-tenure contracts) in Italy. Our results indicate that each year of tenure on the job reduces earnings instability on average by 15%. Workers on a fixed-term contract on average have an earnings instability 10… CONTINUE READING

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