Showing papers on "Human capital published in 1986"
Book•
01 Jan 1986
TL;DR: In this paper, a review of supply and demand in the U.S. labor market is presented, with a focus on the sources of gender differences in earnings and educational attainment of women.
Abstract: Chapter 1 Introduction What Economics Is About Uses of Economic Theory The Scope of Economics Individuals, Families, and Households A Note on Terminology Outline of the Book Appendix: A Review of Supply and Demand in the Labor Market Chapter 2 Women and Men: Historical Perspectives The Source of Gender Differences: Nature versus Nurture-The Ongoing Debate Factors Influencing Women's Relative Status Women's Roles and Economic Development The U.S. Experience Chapter 3 The Family as an Economic Unit: Theoretical Perspectives The Simple Neoclassical Model: Specialization and Exchange Disadvantages of Specialization Advantages of Families Beyond Specialization Transaction Cost and Bargaining Approaches Appendix: Specialization and Exchange: A Graphical Analysis Chapter 4 The Family as an Economic Unit: Evidence Time Spent in Nonmarket Work Estimating the Value of Nonmarket Production The American Family in the Twenty-First Century Chapter 5 The Labor Force: Definitions and Trends The Labor Force: Some Definitions Trends in Labor Force Participation Trends in Labor Force Attachment of Women Trends in Hours Worked Trends in Gender Differences in Unemployment Chapter 6 The Labor Supply Decision The Labor Supply Decision Some Applications of the Theory: Taxes, Child Care Costs, and Labor Supply Analyzing the Long-term Growth in Women's Labor Force Participation Recent Trends in Women's Labor Force Participation: Has the Engine of Growth Stalled? Analyzing Trends in Men's Labor Force Participation Black and White Participation Differentials: Serious Employment Problems for Black Men Appendix: The Income and Substitution Effects: A Closer Look Chapter 7 Evidence on Gender Differences in Labor Market Outcomes Gender Differences in Occupations The Gender Pay Ratio Gender Differences in Union Membership Gender Differences in Self-Employment Gender Differences in Nonstandard Work Chapter 8 Gender Differences in Educational Attainment: Theory and Evidence Chapter Highlights Supply and Demand Explanations: An Overview What Is Human Capital? Evidence on Gender Differences in Educational Attainment The Educational Investment Decision The Rising College Wage Premium Education and Productivity Gender Differences in Educational Investment Decisions: the Human Capital Explanation Gender Differences in Educational Investment Decisions: Social Influences and Anticipation of Discrimination Policy Issues: Title IX-Sports, Academics, and the Status of Single-Sex Education Explaining Women's Rising Educational Attainment Chapter 9 Other Supply-Side Sources of Gender Differences in Labor Market Outcomes: On-the-Job Training, Family Gaps, Psychological Attributes and Math Test Scores On-the-Job Training and Labor Market Experience Why do Firms Pay Tuition Benefits? Gender Differences in Labor Market Experience The On-the-Job Training Investment Decision Experience and Productivity Gender Differences in Training Investment Decisions Occupations and Earnings Family-Related Earnings Gaps Gender Differences in Psychological Attributes A Closer Look at Gender Differences in Math Test Scores Chapter 10 Evidence on the Sources of Gender Differences in Earnings and Occupations: Supply-Side Factors Versus Labor Market Discrimination Labor Market Discrimination: A Definition Analyzing the Sources of Gender Differences in Labor Market Outcomes Empirical Evidence on the Sources of Gender Differences in Earnings The Declining Gender Pay Gap Empirical Evidence on the Causes and Consequences of Gender Differences in Occupations Appendix: Regression Analysis and Empirical Estimates of Labor Market Discrimination Chapter 11 Labor Market Discrimination: Theory Theories of Labor Market Discrimination: An Overview Tastes for Discrimination Subtle Barriers Statistical Discrimination The Overcrowding Model Institutional Models (including dual labor markets) Feedback Effects Chapter 12 Government Policies to Combat Employment Discrimination Rationales for Government Intervention Equal Employment Opportunity Laws and Regulations Effectiveness of the Government's Antidiscrimination Effort Affirmative Action Comparable Worth Chapter 13 Changing Work Roles and Family Formation Economic Explanations for Family Formation Marriage Divorce Cohabitation: Opposite-Sex and Same-Sex Couples Fertility Chapter 14 The Changing American Family and Implications for Family Changing Family Structure Poverty: Incidence and Measurement Implications for Children's Well-Being Chapter 15 Government Policies Affecting Family Well-Being Policies to Alleviate Poverty Aid to Families with Dependent Children (AFDC) and Temporary Assistance to Needy Families (TANF) Earned Income Tax Credit (EITC) Child Support Enforcement Employment Strategies Taxes, Specialization, and Marriage Federal Income Tax Social Security Chapter 16 Balancing the Competing Demands of Work and Family The Competing Demands of Work and Family Rationales for Government and Employer Policies to Assist Workers Family Leave Child Care Other Employer-Provided Family Friendly Policies Chapter 17 Gender Differences Around the World: An Overview Indicators of Women's Economic Status Labor Force Participation Occupations Earnings Educational Attainment Fertility Housework Women's Role in Government and Their Standing Before the Law Cultural Factors Women's Status: An Assessment Economic Development, Globalization, and Women's Status Chapter 18 Gender Differences Around the World: A Closer Look at Specific Countries and Regions A Comparison of the United States to Other Economically Advanced Countries Challenges Facing Women in Developing Countries Countries of the Former Soviet Bloc Countries of the Middle East and North Africa
959 citations
TL;DR: In this article, the authors present a survey and exposition of the development of the earnings function as an empirical tool for the analysis of the determinants of wage rates, which has come to mean any regression of individual wage rates or earnings on a vector of personal, market, and environmental variables thought to influence the wage.
Abstract: Publisher Summary The chapter presents a survey and exposition of the development of the earnings function as an empirical tool for the analysis of the determinants of wage rates. Generically, the term “earnings function” has come to mean any regression of individual wage rates or earnings on a vector of personal, market, and environmental variables thought to influence the wage. The premier application is to the study of the effects of investment in schooling and on-the-job training on the level, pattern, and interpersonal distribution of life cycle earnings associated with the pioneering work on human capital by several mentioned scholars. The chapter is devoted to the theoretical and empirical development of the human capital earnings function during the past 25 years. The chapter surveys the empirical estimates of the rate of return to education and the pattern of life cycle earnings. The chapter discusses the derivation of human capital earnings functions under the assumption of homogenous human capital and introduces the model of heterogeneous human capital described. The chapter considers theoretical and econometric issues, which arise when there is inequality of opportunity and ability and closes with a discussion of empirical findings concerning ability bias. The chapter also describes some recent literature on several topics such as signalling, implicit contracts, and specific human capital, which extend or modify certain aspects of the human capital model.
761 citations
TL;DR: In this article, the authors show that the human capital and sorting models can be tested against each other by examining the effects of state compulsory school attendance laws, and that the results are consistent with the predictions of the sorting model.
Abstract: Under the educational sorting hypothesis a state compulsory school attendance law will increase the educational attainment of high-ability workers who are not directly affected hy the law. Under the human capital hypothesis such laws affect only those individuals whose hehavior is directly constrained. We find that compulsory attendance laws do increase enrollment rates in age groups they do not affect directly. Thus, our results contradict the human capital hypothesis and are consistent with the sorting hypothesis. I. INTRODUCTION The last decade has seen considerable debate between supporters of the human capital and sorting models of education. The former assert that the effect of education on wages reflects increased productivity. The latter maintain that it reflects, at least in part, correlation between education and unobserved ability. Workers use education to signal their ability, while employers use education to screen workers. Despite the importance of the debate, no fully convincing tests of the hypotheses have been developed. In fact, many members of the profession maintain (at least privately) that these hypotheses cannot be tested against each other and that the debate must therefore be relegated to the realm of ideology. In this paper we show that the models can be tested against each other by examining the effects of state compulsory school attendance laws. We show that under the human capital hypotheis, such laws will affect the educational attainment only of those who in the absence of the law would have left school prior to the minimum school leaving age. On the other hand, under the sorting hypothesis the effects of the law will percolate through the system, increasing educational attainment even among workers not directly constrained by the law. Our results are consistent with the predictions of the sorting model.
227 citations
Book•
01 Jan 1986
TL;DR: The theory of individual labor supply and the demand for labor has been studied extensively in the field of labor economics, see as discussed by the authors for an overview of some of the main areas of research.
Abstract: Chapter 1 Labor Economics: Introduction and Overview Chapter 2 The Theory of Individual Labor Supply Chapter 3 Population, Participation Rates, and Hours of Work Chapter 4 Labor Quality: Investing in Human Capital Chapter 5 The Demand for Labor Chapter 6 Wage Determination and the Allocation of Labor Chapter 7 Alternative Pay Schemes and Labor Efficiency Chapter 8 The Wage Structure Chapter 9 Mobility, Migration, and Efficiency Chapter 10 Labor Unions and Collective Bargaining Chapter 11 The Economic Impact of Unions Chapter 12 Government and the Labor Market: Employment, Expenditures, and Taxation Chapter 13 Government and the Labor Market: Legislation and Regulation Chapter 14 Labor Market Discrimination Chapter 15 Job Search: External and Internal Chapter 16 The Distribution of Personal Earning Chapter 17 Labor Productivity: Wages, Prices, and Employment Chapter 18 Employment and Unemployment Appendix: Information Sources in Labor Economics Glossary Answers to "Your Turn" Questions Name Index Subject Index
188 citations
Journal Article•
TL;DR: The authors argue that although the enrolment ratio is a readily available statistic, it may not be the most appropriate indicator for setting investment priorities in education and conclude that statistics on the educational composition of the labour force constitute a more sensitive human capital index.
Abstract: Policy-makers and analysts typically use differences between the school enrolment ratios of different countries or regions to justify educational investment. The authors argue that although the enrolment ratio is a readily available statistic, it may not be the most appropriate indicator for setting investment priorities in education. The report assesses the effective supply of human resources available for economic growth, and captures the degree in which flows translate into human capital stocks. They argue that enrolment ratios alone are an insufficient basis for determining educational policies or priorities because they give a false (upwardly biased) impression of the educational attainment of a country's human resources. They conclude, instead, that statistics on the educational composition of the labour force, constitute a more sensitive human capital index.
186 citations
TL;DR: Analysis of the data indicates that salaries peak from the early to mid-60s, whereas annual citations appear to peak from age 39 to 89 for different departments with a mean age of 59 for the 6 departments.
Abstract: Declining research productivity with age is implied by economic models of life-cycle human capital investment but is denied by some recent empirical studies. The purpose of the present study is to provide new evidence on whether a scientist's output generally declines with advancing age. A longitudinal data set has been compiled for scientists and mathematicians at six major departments, including data on age, salaries, annual citations (stock of human capital), citations to current output (flow of human capital), and quantity of current output measured both in number of articles and in number of pages. Analysis of the data indicates that salaries peak from the early to mid-60s, whereas annual citations appear to peak from age 39 to 89 for different departments with a mean age of 59 for the 6 departments. The quantity and quality of current research output appear to decline continuously with age.
182 citations
TL;DR: In this article, a dynamic model of skills obsolescence is constructed and factors contributing to job and personal changes are described, and job and organizational influences associated with obsolescences are explored.
Abstract: Psychological and economic definitions of personal inputs and job requirements are defined. A dynamic model of skills obsolescence is constructed. Factors contributing to job and personal changes are described. Job and organizational influences associated with obsolescence are explored. Implications of obsolescence for personnel/human resource management are identified.
135 citations
TL;DR: In this article, the role of parental preferences in general and unequal concern in particular in the allocation of human capital investments among children was analyzed, and it was shown that parental preferences either exhibit equal concern or slightly favor gils.
Abstract: In an optimizing model of parental allocation systematic differences in human capital investments betwen the sexes may originate in at least 3 ways. 1) Parents may respond to expected gender wage differentials. 2) Parents may respond to systematic differences by gender in the price of human capital investments. 3) Parental preferences may favor girls or boys in the sense that they value identical outcomes at the same cost more highly for one sex than for the other. This paper analyzes the role of parental preferences in general and unequal concern in particular in the allocation of human capital investments among children. The authors generalize their earlier model of the human capital investments among children to incorporate the possibility that the returns to such investments may include not only the childs own ecpected earnings but also the expected earnings of his or her spouse. Thus the model assumes that parents may value returns that accrue trough the marriage market as well as through education. The relevant returns to education may include marrying a spouse with higher expected earnings. The empirical analysis indicates that gender wage differentials like endowment differentials are mildly reinforced by the parental allocation of human capital investments. Marriage market outcomes are significant determinants of the allocation of human capital investments among children. There is no evidence that parental preferences favor boys; this study shows that parental preferences either exhibit equal concern or slightly favor gils.
129 citations
TL;DR: In this paper, the impact of uncertainty in future income on the demand for education from both theoretical and empirical points of view is analyzed, and the theoretical results deviate substantially from their counterparts in models of human capital formation with certain future income.
Abstract: The impact of uncertainty in future income on the demand for education from both theoretical and empirical points of view is analyzed. Theoretical results deviate substantially from their counterparts in models of human capital formation with certain future income. The theory is tested with a sample of high school graduates that contains data on subjective expectations. Empirical evidence from binomial logit analysis does not entirely support the behavioral implications of the theoretical model.
124 citations
TL;DR: In this article, the authors present a survey on the determination of life cycle earnings, focusing on the human capital approach and its testable implications to individual earning profiles setting aside the aggregate and policy implications.
Abstract: Publisher Summary The chapter presents a survey on the determination of life cycle earnings. The chapter describes the theoretical work on the determination of life cycle earnings. The common thread in this work is the notion that workers can influence their earnings through various investment activities. A person who spends time in school or in on-the-job training sacrifices current earnings in the hope of increasing his future earning potential. Consequently, the observed life cycle earnings profiles reflect individual economic choices as well as purely technological or biological processes such as “depreciation” or “aging.” There is, however, considerable controversy on the market situation in which investment choices are made. The welfare and policy implications are very different if schooling enhances productivity or is merely used as a mode of transferring income by signalling and screening. In this survey focus is on the “human capital” approach and on its testable implications to individual earning profiles setting aside the aggregate and policy implications. There are various stylized facts that the theory attempts to explain: a life cycle earnings profile, which is increasing at early ages and is declining toward the end of the working period; a wage profile that tends to increase over the life cycle with a weak tendency for wage reduction toward the end of the working period; an hours of work life cycle profile, which is increasing at early ages and declining at older ages, with the peak occurring earlier than in the earnings or wage profiles.
99 citations
TL;DR: The "human capital" and "willingness-to-pay" approaches can each aid policy formulation, but neither can substitute for open political process.
Abstract: Cost-benefit analysis--applying economic reasoning to increasingly complex health policy decisions--continues to be a source of vehement disagreement among its practitioners. re than merely technical issues in measurement and accounting are involved; basic social values embedded in different intellectual traditions are coming into conflict. The "human capital" and "willingness-to-pay" approaches can each aid policy formulation, but neither can substitute for open political process.
TL;DR: In this article, a human capital framework for religious observance in the context of human capital is proposed, with a focus on the human capital of a human-computer interaction system.
Abstract: (1986). Religious observance within a human capital framework: theory and application. Applied Economics: Vol. 18, No. 11, pp. 1193-1202.
TL;DR: In this article, the authors integrate the labor and assets markets equilibria to determine and evaluate the wage differentials generated for cyclical and noncyclical risks of unemployment, and they find that a 14-41% wage differential can be explained by inter-industry differences in unemployment risks.
Abstract: This paper integrates the labor and assets markets equilibria to determine and evaluate the wage differentials generated for cyclical and noncyclical risks of unemployment. The relative wage differential is a linear function of unemployment risk measured by the covariance of an index of employment with the rate of change in aggregate output. Seniority and the hoarding of skilled labor are characteristics of minimum cost contracts because employees with more human capital prefer safer jobs. Empirical results suggest that a 14%-41% wage differential can be explained by interindustry differences in unemployment risks.
01 Oct 1986
TL;DR: The authors argued that the most commonly used indicator of human resource development is the enrollment ratio for different levels of schooling, and that a more accurate indicator in this respect, although more difficult to obtain, is the educational attainment of the labor force.
Abstract: The most commonly used indicator of human resource development is the enrollment ratio for different levels of schooling. The paper argues that a more accurate indicator in this respect, although more difficult to obtain, is the educational attainment of the labor force. Therefore, such data have been collected mainly from the 1980 round of censuses for nearly 100 countries and summarized into regional indices of human resource development. One such index, the mean years of schooling embodied in the labor force, shows significant differences in the human capital stock between world regions, as well as between countries within a given region. Such differences in human capital endowments could be further used to explain variations in economic growth patterns across countries, or to form the basis for assessing relative priorities in educational investment.
TL;DR: The human capital revolution of the 1960s and 1970s turned the previously peripheral topic of demand for education into a major area of research for labor economists and examined the theoretical and empirical findings from the past two decades of work on these related issues as mentioned in this paper.
Abstract: Publisher Summary The human capital “revolution” of the 1960s and 1970s turned the previously peripheral topic of demand for education into a major area of research for labor economists. Analysis has focused on a variety of questions relating to the role of education in an economy, individual decision-making with respect to demand for education, and social provision of education. The chapter examines the theoretical and empirical findings from the past two decades of work on these related issues. The chapter discusses the considerable progress made along the paths developed in the late 1950s and early 1960s, as discussed by several economic analysis of demand for education. It is the proposition that economic analysis of rational behavior under specified market and informational conditions goes a long way to understanding the interplay between education and the economy. The evidence on which this conclusion is based, and the specific findings on the social, individual, market, and public finance questions of concern, are presented in the chapter. One of the fundamental issues that motivate economic analysis of education is the extent to which education contributes to national output and, in the context of economic growth, the extent to which increased educational attainment contributes to long-run increases in productivity. One of the key elements of the human capital model of demand for education is that education affects earnings.
TL;DR: This paper used spline functions generated from the Consumer Expenditure Survey data to determine whether there is a life-cycle pattern that is independent of the effect of human capital, and the results suggest an affirmative answer.
Abstract: This paper provides additional evidence on life-cycle patterns of relative risk aversion, using spline functions generated on Consumer Expenditure Survey data. Human capital is hypothesized to affect relative risk aversion; age has been used in previous work as a proxy for human capital. The objective of this study is to determine whether there is a life-cycle pattern that is independent of the effect of human capital. The results suggest an affirmative answer. Moreover, this independent life-cycle pattern is the opposite of that estimated in a previous study that used age as a proxy.
TL;DR: In this article, the authors investigate the effect of job search and specific training on the mobility of workers in a given job and find that the effect is larger from simultaneous estimation, but also reflect more accurate measurement of wage growth between jobs.
Abstract: Ahstract-Analyses of voluntary labor mobility suggest that job search facilitates job change while specific training inhibits mobility. Further, given that specific skills cannot be transferred between jobs, and since both search and training are costly, it is reasonable for workers to specialize in search or specific training on a given job. Training or search specialization, however, implies that estimation methods which treat the incidence of a quit as exogenous underestimate mobility effects on wages. The larger wage effects reported here result from simultaneous estimation but also reflect more accurate measurement of wage growth between jobs.
TL;DR: In this paper, the authors stress the view that earnings differentials should be interpreted in the light of allocation in the labor market and propose a model that acknowledges the difference between individual levels of characteristics and the levels of such characteristics required in the job.
Abstract: This paper stresses the view that earnings differentials should be interpreted in the light of allocation in the labor market. A model is developed that acknowledges the difference between individual levels of characteristics and the levels of such characteristics required in the job. It is applied to data sets for the Netherlands, with education as the most important variable. Neither the individual's education nor the requirements of the job alone are sufficient to determine earnings: they should be considered jointly. The earnings function containing allocation thus proves superior to the function derived from either human capital theory or from segmented labor market theory.
TL;DR: In this article, a first step toward a disaggregation of wages according to income-earning activities is taken, where the activities distinguished here are work in the wage labor market, and vork in self-employment.
Abstract: One of the most stable relationships in economics is the human capital wage determination equation. Numerous studies, using data from the U.S. as well as low income countries, have found that education raises the individual's wage rate, and that experience affects wage rates in a non-linear way, peaking in the age cross-section generally at around thirty years of experience. The "wage rate" is an aggregate concept, in that it represents the returns per hour of work regardless of the type of work performed. This paper is a first step toward a disaggregation of wages according to income-earning activities. The activities distinguished here are work in the wage labor market, and vork in self-employment. These activities earn respectively "market wages" and "self-employment wages," but this nomenclature does not imply that work in self-employment is an activity outside the labor market: self-employment is an individual's choice among labor market alternatives. The motivation for this paper is three-fold. First of all, current literature has not explored in any depth the issue whether the determinants of the wage rates earned in the two activities are similar. Differences may well exist: entrepreneurial human capital varies from that of employees; the mix of pecuniary (wage) and non-pecuniary compensation may differ; entrepreneurs frequently use their own assets like land or capital in their business activity. Section II will expound on these theoretical differences in more detail. Second, little is known about self-employment wages. Most wage studies admit to the different nature of the two activities by omitting all individuals reporting self-employment earnings from the sample, and estimate wage equations for employees only. This is not the optimal solution to the problem: in developing countries up to one half of the labor force is self-employed, and even in industrialized countries 10 to 15 percent adds up to a sizeable group in absolute numbers.' Restricting the sample to employees is likely to intro-
Book•
01 Jan 1986
TL;DR: Shackle as discussed by the authors introduced the demand curve, the income effect, and the status of consumption in the U.S. economy and the supply curve of goods and services in the United States.
Abstract: Foreword G.L.S.Shackle - Introduction - DEMAND - Ricardo, Jevons and Marshall - The Demand Curve - The Income Effect - The Status of Consumption - SUPPLY - The Supply Curve - Cost and Time - Normals and Representatives - ECONOMIES AND SIZE - Internal Economies - External Economies - DISECONOMIES AND SIZE - Diseconomies and Time-Periods - Further Limits to Size - MARKET STRUCTURES - Perfect Competition - Monopolistic Competition - Monopoloy - Oligopoly - DISTRIBUTION - The Market for Inputs - Beyond the Cash Nexus - Action and Environment - LAND - The Supply of Land - The Supply of Labour - Trades Unions - CAPITAL - The Demand for Capital - The Supply of Capital - Capital and Labour - Human Capital - ORGANISATION - The Nature of Organisation - The Supply of Organisational Ability - Reference Notes - Index
Book•
20 May 1986
TL;DR: Mariger et al. as discussed by the authors explored how people make decisions about how much to consume and save over their lifetimes using a structural consumption model that incorporates endogenous liquidity constraints, but no planned bequests, to data on a cross-section of U.S. families.
Abstract: In "Consumption Behavior and the Effects of Government Fiscal Policies," Randall Mariger explores how people make decisions about how much to consume and save over their lifetimes. An understanding of these issues illuminates not only individual behavior but important properties of the macro economy as well. The most popular framework for analyzing consumption has been the life-cycle theory. Mariger tests two fundamental, and controversial, assumptions underlying the theory that there are no planned bequests and that human capital is marketable. To do this, he fits a structural consumption model that incorporates endogenous liquidity constraints (non-marketability of human capital), but no planned bequests, to data on a cross-section of U. S. families. This estimated model, in conjunction with estimates of alternative models, enables him to make inferences about the respective effects of liquidity constraints and social security wealth on consumption. This latter effect yields indirect evidence concerning planned bequests. Mariger also presents direct evidence concerning bequest behavior.Among his findings are that the model fits the data very well in spite of its tight theoretical structure; that liquidity constraints are prevalent and have important effects on consumption behavior; that planned bequests appear not to be common among families in the lower 99.1% of the wealth distribution; and that families in the upper 0.9% of the wealth distribution appear to plan substantial bequests. Mariger devotes the latter part of his book to studying the implications of his estimated consumption model for the effects of government fiscal policies. More specifically, he simulates the model to infer the effects of government tax/debt policy, as well as those of the social security system, on aggregate savings."
TL;DR: In this article, a short-run view of the labour market is presented, where individuals with given levels of education have to be matched with jobs differing in level of complexity and difficulty.
Abstract: Taking a short-run view of the labour market, where individuals with given levels of education have to be matched with jobs differing in level of complexity and difficulty, wages are related to education and job levels. In a sample of some 13 000 observations, controlling for age, experience and sex, a model emphasizing both sides of the allocation process is favoured over the simple human capital view that ignores allocation once education is taken care of. It is claimed that the long-run human capital model can fruitfully be expanded with this short-run allocation structure. The empirical results measure the differences in earnings for individuals with given education working at different job levels, and shows them to be substantial. The relevance of adding job levels to the explanatory variables is illustrated with the case of female earnings discrimination and with differences in age–earnings profiles between general and vocational education.
TL;DR: In this paper, the efficiency wage is analyzed in the context of a market for labor "quality" units, which is equivalent to that of a perishable (one-period) form of firm-specific human capital which is most efficiently financed by the employer indirectly through higher wages.
TL;DR: This article used state level data to evaluate the relative utility of various economic explanations in predicting changes in employment in manufacturing between 1970 and 1980, finding that the empirical evidence points to the importance of labor organization in promoting the relocation of manufacturing employment.
Abstract: Many analysts have asserted that recent interregional shifts in investment and jobs in manufacturing are the product of variations in the socioeconomic characteristics of geographic regions. Conventional industrial location theorists tend to point to the market potential, physical characteristics, and human capital endowments of geographic regions. In contrast, neoMarxist and business climate theorists typically cite political-economic explanations related to the strength and cost of labor, the level of taxation, and the extent of social welfare provisions. Using state level data, I evaluate the relative empirical utility of these various explanations in predicting changes in employment in manufacturing between 1970 and 1980. The results provide partial support for the political-economic explanation and no support for conventional industrial location theories. In particular, the empirical evidence points to the importance of labor organization in promoting the relocation of manufacturing employment. Few transformations in the American economy over the past 15 years have received greater attention than the interregional migration of industries and jobs from the traditional industrial belt to new locations within the United States. Though many analysts assert that this rapid movement of capital and jobs is the product of variations in the socioeconomic characteristics of geographic regions (Bluestone and Harrison, 1982; Weinstein and Firestine, 1978), there is little agreement over which characteristics are the most important for investment or disinvestment decisions. Conventional industrial location theorists tend to point to the human capital, physical, and market-size endowments of geographic areas as the leading determinants of plant location (Miller, 1977). Neo-Marxist and business climate theorists tend to emphasize political-economic factors associated with the presence of labor unions and wage costs (Peet, 1983; Storper and Walker, 1983), the level of state taxation (Kieschnick, 1981), and the extent of social welfare benefits (Bluestone and Harrison, 1982; Piven and Cloward, 1982). In this paper I use state-level data to evaluate the relative utility of these explanations as they relate to
TL;DR: In this paper, the idea of job matching is refined to distinguish between job matching within firms and job matching across firms, and the derived hypotheses are supported by empirical results of a causal model which controls for human capital and personal endowment variables.
Abstract: The process of job matching is complementary to human capital investment in determining earnings growth over the individual job history. Change in earnings associated with moving between jobs is portrayed as a result of matching. In this paper the idea of job matching is refined to distinguish between job matching within firms and job matching across firms. The derived hypotheses are supported by empirical results of a causal model which controls for human capital and personal endowment variables.
TL;DR: In this article, the authors investigated Japanese wage differentials based on the concept of industrial division and found that worker characteristics such as education, length of service and age were treated differently by sector, sex and occupation.
TL;DR: The authors found that educational quality had significant effects on manufacturing output but that school expansion (quantity) had inconsistent effects on output in commercial agriculture, indicating that the human capital model may be valid for earlier periods of commercial expansion, but only in countries in which schools have attained a threshold level of quality to yield long-term economic effects, and only in urban-based sectors.
Abstract: any economic output effects of school expansion should be studied at an aggregate level. First, economic effects may be more related to the changing social rules of trade and work within modernizing economies, which are increasingly oriented around markets and mass production, not village-based subsistence. Second, aggregate analysis avoids the ecological fallacy of estimating nation-level productivity growth from individual-level correlations between school attainment and wage levels. Initial empirical tests of this institutional model show that educational investments have either small or inconsistent economic effects. However, this work has failed to disaggregate the potential effect of educational quality, (including literacy levels) from the effect of the quantity of schooling available and to disentangle possible effects among different economic sectors. In this paper, we address these issues as they apply to an early period of commercial expansion in Mexico: 1888 to 1940. We found that variation in educational quality had significant effects on manufacturing output but that school expansion (quantity) had inconsistent effects. Educational quality had less consistent effects on output in commercial agriculture. These findings indicate that the human capital model may' be valid for earlier periods of commercial expansion, but only in countries in which schools have attained a threshold level of quality to yield long-term economic effects, and only in urban-based sectors.