Employer seniority discrimination

Abstract

This research examines the theories presented in the human capital literature by Becker (1975), Lazear (1979, 1981), and others that the relative paths of earnings and value of marginal product (henceforth, VMP) diverge over the worklife. The findings support Lazear's work incentive theory for professionals, but reject its application to non-professionals. As predicted by orthodox human capital theory, documentation is also developed that earnings for non-professionals equal their VMP over the job life-cycle. On the other hand, the analysis provides no support to Becker's specific training model.