Download or read book Wages Human Capital and Work Incentives in a Transition Economy written by Belton M. Fleisher and published by . This book was released on 2000 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation of Human Capital and Wage Inequality written by Fatih Guvenen and published by DIANE Publishing. This book was released on 2010-10 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Wage inequality has been significantly higher in the U.S. than in continental European countries since the 1970s. This report studies the role of labor income tax policies (LITP) for understanding these facts. Countries with more progressive LITP have significantly lower before-tax wage inequality at different points in time. Progressivity is also negatively correlated with the rise in wage inequality during this period. Wage inequality arises from differences across individuals in their ability to learn new skills as well as from idiosyncratic shocks. Progressive taxation compresses the (after-tax) wage structure, thereby distorting the incentives to accumulate human capital, in turn reducing the cross-sectional dispersion of (before-tax) wages. Illustrations. This is a print-on-demand publication; it is not an original.

Download or read book Employment Policy in Transition written by Regina T. Riphahn and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: A historically unique experiment is about to enter its second decade - German unification. Early hopes for a rapid and smooth economic transformation soon turned out to be overly optimistic. Despite massive financial transfers, the political promise of a "blooming landscape" remains a vision. Actual developments have left deep scars on the labor market, and the effects will be felt for decades to come. Was this outcome to be expected, perhaps even inevitable? What went wrong, and what were the available options? Or is the current state of Eastern German labor market in fact better than is commonly assumed?

Download or read book Human Capital Growth and Inequality in Transition Economies written by Michael Spagat and published by . This book was released on 2002 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On the Role of Learning Human Capital and Performance Incentives for Wages written by Braz Camargo and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance pay in general amounts to only a small fraction of total pay. In this paper, we show that performance pay is nevertheless important for the level and dynamics of wages over the life cycle because of the incentives it indirectly provides for human capital acquisition and because of its impact on the variability of total pay. We articulate this argument in the context of a model that combines three key mechanisms for wage growth and dispersion: employer learning about workers' ability, human capital acquisition, and performance incentives. We use this model to account for the experience profile of wages, their dispersion, and their composition in terms of fixed and variable (performance) pay. The model admits an analytical decomposition of performance pay into four terms that capture (i) the trade-off between risk and incentives characteristic of settings of moral hazard; (ii) the insurance that firms provide against the wage risk due to the uncertainty about ability; (iii) incentives for effort arising from this uncertainty (career concerns); and (iv) incentives for effort generated by the prospect of human capital acquisition. We prove the model is identified under standard assumptions. Despite its parsimony, the model fits the data very well, including the empirical finding that performance pay as a share of total pay first increases and then decreases with experience. This feature of performance pay, which we are the first to document, runs contrary to the prediction of standard models of performance incentives that the ratio of performance pay to total pay increases with experience, especially at the end of the life cycle. Our estimates imply that effort to produce output augments human capital. Also, human capital acquisition and insurance against uncertainty about ability are quantitatively the main determinants of performance pay. Career-concerns incentives, on which the theoretical literature has focused, and the strength of the contemporaneous trade-off between risk and incentives--the primary determinant of variable pay in static moral-hazard models--are instead much less relevant. Importantly, we find that through the cumulative impact of effort on the job on human capital acquisition and the contribution of variable pay to the variance of total pay, performance incentives are a crucial source of wage growth and dispersion over the life cycle.

Download or read book Returns to Human Capital Under the Communist Wage Grid and During the Transition to a Market Economy written by Daniel Münich and published by . This book was released on 2000 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Human Capital Externalities Evidence from the Transition Economy of Russia written by Alexander Muravyev and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper tests for the existence of human capital externalities using a micro-level approach: the Mincerian wage regression augmented with the average level of education in cities. To solve identification problems arising from the endogeneity of average education, the study exploits a natural experiment provided by the process of economic transition: average education at the end of communism can be seen as exogenous in respect of wages prevailing after the start of transition. Our empirical results based on the RLMS data show that a 1 percentage point increase in the share of city residents with a university degree results in an increase of wages of city residents by about 1 percent.

Download or read book On the Role of Learning Human Capital and Performance Incentive for Wages written by Braz Camargo and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Note on Incentive Wages with Human Capital Formation written by J. Muysken and published by . This book was released on 1996 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation of Human Capital and Wage Inequality written by Fatih Guvenen and published by . This book was released on 2009 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Wage inequality has been significantly higher in the United States than in continental European countries (CEU) since the 1970s. Moreover, this inequality gap has further widened during this period as the US has experienced a large increase in wage inequality, whereas the CEU has seen only modest changes. This paper studies the role of labor income tax policies for understanding these facts. We begin by documenting two new empirical facts that link these inequality differences to tax policies. First, we show that countries with more progressive labor income tax schedules have significantly lower before-tax wage inequality at different points in time. Second, progressivity is also negatively correlated with the rise in wage inequality during this period. We then construct a life cycle model in which individuals decide each period whether to go to school, work, or be unemployed. Individuals can accumulate skills either in school or while working. Wage inequality arises from differences across individuals in their ability to learn new skills as well as from idiosyncratic shocks. Progressive taxation compresses the (after-tax) wage structure, thereby distorting the incentives to accumulate human capital, in turn reducing the cross-sectional dispersion of (before-tax) wages. We find that these policies can account for half of the difference between the US and the CEU in overall wage inequality and 76% of the difference in inequality at the upper end (log 90-50 differential). When this economy experiences skill-biased technological change, progressivity also dampens the rise in wage dispersion over time. The model explains 41% of the difference in the total rise in inequality and 58% of the difference at the upper end.

Download or read book Handbook of Labor Economics written by Orley Ashenfelter and published by . This book was released on 1986 with total page 960 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines labour supply and demand and their impact on the wage structure. Explains the sources of income inequality, and the disincentive effects of attempts to produce a more equal distribution. Labour supply is considered in relation to the incentives which individuals have to provide labour services. Observes that heterogeneity in worker skills and employer demands often tempers the outcomes that would be expected in frictionless labour markets.

Download or read book How New is the new Employment Contract written by and published by W. E. Upjohn Institute. This book was released on 2002 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: Topics covered include theories and changes of labour markets, wage structures, job characteristics, skills and wages, pay flexibility.

Download or read book Human Capital Labor Demand and Wages written by Gerbert E. Hebbink and published by . This book was released on 1992 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Human Capital and Economic Development written by Sisay Asefa and published by W. E. Upjohn Institute. This book was released on 1994 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Human Capital Inequality and Development written by Rongsheng Tang and published by . This book was released on 2017 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation has three chapters. In this first chapter, I study the wage inequality. By decomposing residual wage inequality for the highly educated, I find that the within-job component is the main contributor to both the level and increase of wage inequality from 1990 to 2000. To explain this fact, I propose a model that allows within-job wage inequality to be influenced by performance-pay incidence and job fitness. Both factors were found to be correlated with within- job wage inequality. Performance pay amplifies ability dispersion through self-selection and work incentives; job fitness causes wage inequality even among individuals with the same ability level, and the expected job fitness affects the motive for the performance pay. I calibrate the model to the US economy in 1990 and quantify the importance of these two factors for wage inequality. The model explains around 71.5% of residual wage inequality for the high skill group in 2000. The job-fitness channel explains 18.8% and performance-pay channel explains 34.1% of the increase in wage inequality. In the second chapter, I study the Chinese economy. About four decades ago, the agricultural sector in China was characterized by a Dual Track System (DTS) which featured the coexistence of a planned and market economy. Under the DTS, farmers were obligated to sell agricultural products to the government at a given price before selling the remainders to market. Urban workers and enterprises enjoyed quota benefits that allowed them to buy agricultural products at a lower price from the government. In this paper, I build a model to quantitatively analyze DTS's impact on China's transition between 1978 and 1992. Within the system, procurement requirements influence the occupational choice of rural workers, and quota benefits impact firms' entry decisions. Misallocation occurs when people with a comparative advantage in farming choose to work in rural enterprises in order to avoid procurement requirements and when urban firms with low productivity survive as a result of lower input prices. Quantitative analysis shows that compared to a market economy, the DTS has decreased rural and urban enterprises' output by 6% and 37% respectively. Comparatively, a policy with the constant procurement would have decreased the output by more than 80%. The third chapter is about education mismatch. In order to better understand education mismatch, I build a model with three underlying channels--preference, promotion and search friction--and quantify their effects on residual wage inequality for the highly educated. Education mismatch is measured by the relatedness between a worker's field of study of the highest degree and the current occupation. In survey data, these three factors attributed 70% of education mismatch. Workers who are mismatched because of preference change or search friction are usually paid relatively lower than matched workers. However, the pay for the mismatched workers due to promotion opportunities is actually higher than the matched group when controlling for demo- graphic characteristics. These factors affect the wage inequality through the employment decision. Quantitatively, I found that the promotion channel has a large contribution to the increase of wage inequality, and the total contribution of preference and search friction is around 28%.

Download or read book A Note on Incentive Wages with Human Capital Formation written by Joan Muysken and published by . This book was released on 1996 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Taxation of Human Capital and Wage Inequality written by Fatih Guvenen and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Wage inequality has been significantly higher in the United States than in continental European countries (CEU) since the 1970s. Moreover, this inequality gap has further widened during this period as the US has experienced a large increase in wage inequality, whereas the CEU has seen only modest changes. This paper studies the role of labor income tax policies for understanding these facts, focusing on male workers. We construct a life cycle model in which individuals decide each period whether to go to school, work, or stay non-employed. Individuals can accumulate skills either in school or while working. Wage inequality arises from differences across individuals in their ability to learn new skills as well as from idiosyncratic shocks. Progressive taxation compresses the (after-tax) wage structure, thereby distorting the incentives to accumulate human capital, in turn reducing the cross-sectional dispersion of (before-tax) wages. Consistent with the model, we empirically document that countries with more progressive labor income tax schedules have (i) significantly lower before-tax wage inequality at different points in time and (ii) experienced a smaller rise in wage inequality since the early 1980s. We then study the calibrated model and find that these policies can account for half of the difference between the US and the CEU in overall wage inequality and 84% of the difference in inequality at the upper end (log 90-50 differential). In a two-country comparison between the US and Germany, the combination of skill-biased technical change and changing progressivity of tax schedules explains all the difference between the evolution of inequality in these two countries since the early 1980s.