This paper replicates Medoff and Abraham's [Medoff, J. and Abraham, K., 1980. Experience, performance, and earnings. Quarterly Journal of Economics 95, 703–736.] results where the introduction of performance ratings into an earnings equation doesn't reduce the coefficient on tenure. M&A interpret this as being worrying for Human Capital Theory. We offer an interpretation where it isn't.
- specific human capital
- job matching
Barmby, T., & Eberth, B. (2008). Worker turnover and job matching: Implications for estimating the returns to tenure . Economics Letters, 101(2), 137-139. https://doi.org/10.1016/j.econlet.2008.07.001