Job seniority not key to wage growth, labor market experience is.
Wages do not necessarily increase significantly with job seniority alone. Previous studies have shown a strong link between tenure and wages, but this new research found that the impact of job seniority on pay is actually quite small. Instead, overall work experience and changing jobs play a bigger role in determining wage growth over a career. The study used a special method to account for biases in estimating the relationship between tenure and wages. The main takeaway is that the connection between how long someone has been in a job and their pay is not as strong as previously thought.