Tenure, Turnover, And Earnings Profiles In Germany And The United States

Abstract

Employment tenure, job turnover and returns to general and specific skills are examined for male workers in Germany and the United States using data from the German Socio-Economic Panel and the Panel Study of Income Dynamics. Employment in Germany is characterized by longer duration and less frequent turnover than in the United States. Returns to experience and tenure are lower in Germany than in the U.S.; however, peak earnings occur later. This delayed peak in the employment-earnings profile provides an incentive for German workers to remain longer with their employers and change jobs less frequently.