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Sources of Wage Growth

Adda, Jerome; Dustmann, Christian; (2023) Sources of Wage Growth. Journal of Political Economy , 131 (2) pp. 456-503. 10.1086/721657. Green open access

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This paper investigates the sources of wage growth over the life cycle, determined by sectoral and firm mobility, unobserved ability, the accumulation of cognitive-abstract or routine-manual skills, and whether workers enroll in vocational training at the start of their career. Our analysis uses longitudinal administrative data over three decades and shows that routine-manual skills drive early wage growth, while cognitive-abstract skills become more important later. Moreover, job amenities are an important determinant of mobility decisions. Vocational training has long-term effects on career outcomes through various channels and generates returns for both the individual and society.

Type: Article
Title: Sources of Wage Growth
Open access status: An open access version is available from UCL Discovery
DOI: 10.1086/721657
Publisher version: https://doi.org/10.1086/721657
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10165204
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