Industry Experience Trumps Seniority in UK Wage Growth Trends
The study looked at how seniority and experience affect wages for male workers in the UK. They found that having more years on the job increases wages by 1% each year for the first 10 years, and by 60% after 30 years. Industry experience is more important than job seniority for nonunion workers, with wages rising by 10% for every 10 years of industry experience. However, for union workers, job seniority is more significant, increasing wages by twice as much as for nonunion workers. Overall, individual and job match differences are important factors to consider when estimating wages in the British labor market.