Download or read book Life Cycle Wage Growth and Heterogeneous Human Capital written by Carl Sanders and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Wages grow rapidly for young workers, and the human capital investment model is the classic framework to explain this growth. While estimation and the theory of human capital have traditionally focused on general human capital, both have evolved toward models of heterogeneous human capital. In this article, we review and evaluate the current state of this literature. We exposit the classic model of general human capital investment and extend it to show how a model of heterogeneous human capital can nest previous models. We then summarize the empirical literature on firm-specific human capital, industry- and occupation-specific human capital, and task-specific human capital and discuss how these concepts can explain a wide variety of labor market phenomena that traditional models cannot.

Download or read book Worker Flows and Wage Growth Over the Life Cycle written by Niklas Engbom and published by . This book was released on 2017 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using panel data for 1990-2014 from 12 OECD countries, I document three facts about cross country labor market outcomes. First, worker flows and life-cycle wage growth differ substantially across countries. Second, the fluidity of a country's labor market covaries positively with life-cycle wage growth of its workers. Third, the direct effect of job shopping accounts for only a quarter of this. I build an equilibrium life-cycle model of the labor market that features search and human capital accumulation, and show that a faster rate of climbing the job ladder increases incentives to accumulate human capital. A calibrated version of the model suggests that differences in the cost to firms of hiring may account for all of the empirical covariation between fluidity, on the one hand, and wage growth and output per capita, on the other, and 43-45 percent of the overall variation in these measures.

Download or read book Earnings Over the Lifecycle written by S. W. Polachek and published by Now Publishers Inc. This book was released on 2008 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: Earnings over the Lifecycle: The Mincer Earnings Function and Its Applications focuses on the underlying economics behind the Mincer earnings function and its robustness and relevance to policy applications.

Download or read book Heterogeneity and Wage Inequalities Over the Life Cycle written by Thierry Magnac and published by . This book was released on 2020 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data on French male wage employees observed over 30 years, we estimate individual-specific parameters of a human capital investment model by random and fixed effect methods. Individual wage profiles are described by a level, a slope and a curvature. Among the salient results, cross-section inequalities exceed life-cycle inequalities by a factor increasing from 20% to 80%, and permanent heterogeneity explains between 60 and 90% of the variance of wages. Multidimensional heterogeneity, and in particular the heterogeneous curvature of individual profiles, is found to be necessary to properly describe the stochastic process of wages over the life-cycle.

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 Over the Life Cycle written by Catherine Sofer and published by Edward Elgar Publishing. This book was released on 2004-01-01 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: . . . I am convinced that it should occupy a high position on the desk of policymakers. . . This book constitutes a good state-of-the-art study in this field and paves the way for further research in this direction. Marie-Claire Villeval, Economic Record This attractive publication is carried out as a clear attempt to gain access to a wider audience, relaxing formal and technical details, which makes the lecture easier. . . An international comparison of literature or educational and labour experiences is provided in every contribution in the book, helping to obtain a wider perspective of the problems tackled. Carmen García and Julio López, Education Economics This book makes a novel contribution to economics of education in several key respects. It highlights a broad number of crucial factors over the individual s life cycle that underlie inequalities in education and in the labour market. . . It is amazing how limited our knowledge is about these interactions despite their high priority in national as well as EU-level policy-making. This is a timely book concerned with topics of high policy relevance. Moreover, the authors have well succeeded in their attempt to write "in a style that makes this work accessible to a wider audience", using the editor s words. It is most important that academics as well as politicians are made aware of the considerable knowledge gaps that still prevail in our understanding of the role of education and training for the individual s success or failure in school and in working life. Rita Asplund, The Research Institute of the Finnish Economy (ETLA), Finland In the last decade, changes occurring in the demand for skills have produced significant effect on the functioning of labour markets in Europe and elsewhere. The challenge posed by a knowledge based society for sustained growth has been at the centre of the European strategy for employment and has important implications for the design of labour market policies. This book brings together a wide range of contributions written by leading experts on key issues such as: schooling systems, transition from school to work and lifelong learning, thereby providing an essential reference for both researchers and policymakers. Claudio Lucifora, Università Cattolica, Italy Human Capital Over the Life Cycle synthesises comparative research on the processes of human capital formation in the areas of education and training in Europe, in relation to the labour market. The book proposes that one of the most important challenges faced by Europe today is to understand the link between education and training on the one hand and economic and social inequality on the other. The authors focus the analysis on three main aspects of the links between education and social inequality: educational inequality, differences in access to labour markets and differences in lifelong earnings and training. Almost all the stages in the life cycle are tracked from early childhood to stages late in the working life: firstly the characteristics and effects of schooling systems, then the transitions from school to work and, finally, human capital and the working career. Academics and researchers of European studies, labour economics and the economics of education will all find this novel and analytically sound book of interest, as will sociologists and policymakers in Europe.

Download or read book Labor Market Dynamics and Individual Learning Ability written by Jongsuk Han and published by . This book was released on 2013 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: "My research focuses on how labor market dynamics are different across ability. In this dissertation, I explore the impact of individual ability on the cyclicality of employment rates over the business cycle and non-employment duration. Then I provide a human capital model with learning-by-doing and heterogeneous learning ability to explain the differences in observed labor market dynamics across ability. In chapter one, I discuss the Armed Forces Qualification Test as a measure of ability. Then, I provide some empirical evidence which shows that high ability workers are more attached to the labor market than low ability workers. Data from the National Longitudinal Survey of Youth 1979 shows that high ability workers have higher employment rates, less pro-cyclical employment rates, and shorter non-employment duration than low ability workers. At the same time, workers with high ability have higher wage levels and wage growth rates than low ability workers. I suggest that a human capital model with learning-by-doing and heterogeneous learning ability can explain high labor supply from high ability workers, because current labor supply increases future human capital which delivers higher labor income in the future. In the second chapter, I empirically document that employment rates of high ability workers are less volatile than those of low ability workers over the business cycle. Less pro-cyclical employment rates for high ability workers remains even after controlling for education and average life-time wage. Moreover, the impact of ability on employment cyclicality decreases over the life cycle. In order to explain my empirical findings, I provide a life-cycle model with human capital accumulation through learning-by-doing. Heterogenous learning ability is introduced into the model to generate different wage profiles across ability. In this model, high ability workers can accumulate more human capital than low ability workers during any given period of employment. Therefore, high ability workers have more incentive to provide their labor than low ability workers because they can have higher return in the next period by accumulating more human capital. In the recession, all workers reduce their labor supply because the aggregate productivity falls. However, high ability workers decreases labor supply much less than low ability workers because working in the current period increases their future human capital. I calibrate the model to match employment and wage profiles over experience. Then, an aggregate productivity shock is introduced into the model to perform the business cycle analysis. The simulated data mimics the observed pattern in the data. In the last chapter, I explore the duration difference across ability groups instead of the incidence of employment. I find that high ability workers experience shorter non-employment duration than low ability worker even after conditioning on education and average life-time wage. I test whether the main reason of short non-employment duration for high ability workers is induced by low propensity to change their previous occupation, industry, or employer. Although workers who do not change occupation, industry, or employer have much shorter non-employment duration than workers who find new jobs in different sectors, the ability effect on non-employment duration is not generated by this sorting mechanism. Lastly, I build a human capital model with learning-by-doing and heterogeneous learning ability. Since high ability workers accumulate more human capital than low ability workers during the same employment period, high ability workers have a lower reservation wage conditional on current human capital stock. Hence, high ability workers are more likely to accept the wage offer than low ability workers after separation. I calibrate the model to match employment and wage profiles and average non-employment duration simultaneously. The calibrated model can qualitatively reproduce short non-employment duration for high ability workers"--Pages v-vii.

Download or read book Human Capital and Endogenous Growth in a Large scale Life cycle Model written by Patricio Arrau and published by . This book was released on 1989 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Estimates of a Life cycle Wage Process from Optimal Human Capital Accumulation written by Huoying Wu and published by . This book was released on 1996 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneous Human Capital written by Suren Basov and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Production of Human Capital and the Lifecycle of Earnings written by Jacob Mincer and published by . This book was released on 1993 with total page 41 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 Estimation of a Life Cycle Model with Human Capital Labor Supply and Retirement written by Xiaodong Fan and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop and estimate a life-cycle model in which individuals make decisions about consumption, human capital investment, and labor supply and use it to analyze changes in Social Security rules. The most important aspect of our paper is human capital towards the end of the life cycle which responds to changes in the rules. Retirement arises endogenously as part of the labor supply decision. The model allows for both an endogenous wage process through human capital investment (which is typically assumed exogenous in the retirement literature), an endogenous retirement decision (which is typically assumed exogenous in the human capital literature), and accounts for the Social Security system. We estimate the model using indirect inference to match the life-cycle profiles of employment and measured wages from the SIPP data. The model replicates the main features of the data--in particular the large increase in measured wages and small increase in labor supply at the beginning of the life cycle as well as the small decrease in measured wages but large decrease in labor supply at the end of the life cycle. We use the model to estimate the effects of various changes to tax and Social Security policies and show that allowing for human capital accumulation is critical.

Download or read book The Structure of Wages written by Edward P. Lazear and published by University of Chicago Press. This book was released on 2009-05-15 with total page 473 pages. Available in PDF, EPUB and Kindle. Book excerpt: The distribution of income, the rate of pay raises, and the mobility of employees is crucial to understanding labor economics. Although research abounds on the distribution of wages across individuals in the economy, wage differentials within firms remain a mystery to economists. The first effort to examine linked employer-employee data across countries, The Structure of Wages:An International Comparison analyzes labor trends and their institutional background in the United States and eight European countries. A distinguished team of contributors reveal how a rising wage variance rewards star employees at a higher rate than ever before, how talent becomes concentrated in a few firms over time, and how outside market conditions affect wages in the twenty-first century. From a comparative perspective that examines wage and income differences within and between countries such as Denmark, Italy, and the Netherlands, this volume will be required reading for economists and those working in industrial organization.

Download or read book Ability and training Over the Life Cycle written by Mark R. Killingsworth and published by . This book was released on 1976 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Cohort Size on Human Capital Investment and Earnings Growth written by Frank Emile Nothaft and published by . This book was released on 1985 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Human Capital Prices Productivity and Growth written by Audra J. Bowlus and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: