Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
In this paper, we expand on the seminal work of <xref ref-type="bibr" rid="R4">Altonji and Shakotko (1987)</xref> and <xref ref-type="bibr" rid="R38">Topel (1991)</xref> and reinvestigate the returns to seniority in the United States. We begin with the same wage equation as in previous studies. We extend the model of <xref ref-type="bibr" rid="R25">Hyslop (1999)</xref> and explicitly model the participation/employment and inter-firm mobility decisions, which, in turn, define the individual's experience and seniority. We introduce into the wage equation a summary of the workers' entire career path. The three-equation system is estimated simultaneously using data from the Panel Study of Income Dynamics (PSID). We find that for each of the three education groups studied the returns to seniority are larger than those previously found in the literature. Copyright , Wiley-Blackwell.