Firm-specific training reduces wage growth for experienced employees.
The article looks at how seniority affects wages in companies. By analyzing data from multiple observations within firms, the researchers found that seniority does impact wages within a company. However, this doesn't necessarily mean that more experience equals higher pay due to on-the-job training requirements. Employees with specific training needs may not see as much of a wage increase over time. Additionally, workers paid based on their output may not see much of a pay increase as they gain more experience.