Reply #7: Earnings based on "tenure" cannot be replaced by education

[FarCenter]

Employers sometimes give workers promotions or raises based on seniority. This is not based on education or expertise, but is more a reward for loyalty and service. It cannot be replaced until a similar track record is established with a new employer.

Employers sometimes give workers promotions or raises based on company specific expertise and/or skills related to a specific set of tasks within the organization. This part of compensation generally will not be replaced by education unless there is a really close match to skills learned to a new position.

And in practice, it is hard to untangle seniority and company specific worth due to experience and knowledge that causes more senior employees to be paid more. But unless your occupation is highly standardized and generic, you can't expect a new employer to pay what the previous one did. And the effect is amplified when the experience is in a declining sector of business.