On the Negative Correlation between Performance and Experience and Education

12 Pages Posted: 19 Jun 2004 Last revised: 30 Nov 2022

See all articles by Andrew Weiss

Andrew Weiss

Boston University - Department of Economics; National Bureau of Economic Research (NBER)

Henry Landau

Independent

Date Written: April 1985

Abstract

We consider a model where a worker's productivity must exceed some lower bound for himto satisfy the minimum qualifications for a particular job. If the worker's productivity exceeds some upper bound he is promoted. We assume the productivity of every worker increases with experience, tenure and education. This relationship differs across workers. We present distributions of workers with the property that, among workers on a particular job, education, experience, or tenure is negatively correlated with productivity; even though for any single worker on that job those demographic characteristics have strongly positive effects on productivity. The result is due to the effect of the job assignment rule on the distribution of workers on the job.

Suggested Citation

Weiss, Andrew M. and Landau, Henry, On the Negative Correlation between Performance and Experience and Education (April 1985). NBER Working Paper No. w1613, Available at SSRN: https://ssrn.com/abstract=336342

Andrew M. Weiss (Contact Author)

Boston University - Department of Economics ( email )

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Henry Landau

Independent

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