WAGE REDUCTION, UNEMPLOYMENT AND SPECIFIC HUMAN CAPITAL

This paper re-examines the specific human capital hypothesis concerning short-run employment variation to analyze the circumstances in which wage reductions and/or layoffs will occur. By relaxing the usual assumption of downward wage rigidity, we show that the specificity of training influences the attractiveness of wage reduction compared to job separation. The choice of adjustments is analyzed and implications are drawn concerning the impact of the level of specific skill and of other factors on the choice and on the magnitude of such wage reductions as occur. These implications are tested with data on the Seattle recession of 1970-72.     

INFORMAL LABOR MARKETS AND ON‐THE‐JOB TRAINING: EVIDENCE FROM WAGE DATA

This study examines whether informal sector jobs are a source of training for young less‐educated workers. Controlling for worker and job characteristics, it is found that, in the early years of workers' careers in Mexico, wage growth in the informal sector is higher than in the formal sector. This result is consistent with general human capital investment on‐the‐job if the informal labor market is more competitive than the formal labor market due to frictions generated by labor regulations. (JEL O17, J24, J310)     

Wage and Non-Wage Compensation Among Young Alcoholic and Heavy Drinking Women: A Preliminary Analysis

The association between drinking and selected job characteristics among women aged 24 to 31 is examined. Using the 1989 NLSY, women are classified as alcohol abusers or dependent based on DSM-III-R criteria or as heavy drinkers based on reported frequency of six or more drinks. Heavy drinking is negatively associated with wage and non-wage compensation. These effects diminish when human capital measures are controlled. Current alcoholism and current and past heavy drinking are strongly negatively associated with years of schooling. The association between alcoholism and job compensation and characteristics is not as strong as that seen for heavy drinking. It is not known if this is a consequence of errors in identifying alcoholic women in population-based surveys.     

家庭社会资本对大学生农村就业意愿的影响

家庭是影响大学生农村就业的一个重要因素,因而家庭社会资本与大学生农村就业行为有密切的关系。家庭社会资本对大学生去农村的就业意愿、最低工资价位和职业选择的影响显著。母亲的受教育程度、家庭年收入越高,大学生去农村的就业意愿越高,大学生去农村的最低心理工资价位越高;父母的受教育程度越高,大学生去农村更愿意选择从政。     

Tasks,occupations and wages in OECD countries

This article investigates the links between earnings, human capital and job tasks, using internationally comparable information from the OECD Survey of Adult Skills. The authors use the theoretical framework developed by Autor and Handel (2013) and extend their empirical results to 21 OECD countries. The data allow for a richer characterization of workers' human capital by including both educational attainment and a measure of cognitive skills. Their findings confirm the predictive power of job tasks in explaining wage differences, both between and within occupations, and provide empirical support for the model's prediction in the vast majority of countries.     

Labor Market Penalties for Mothers in Italy

We use a large Italian employer-employee matched dataset to study how motherhood affects women’s working career in terms of labor force participation and wages. We confirm that the probability of exiting employment significantly increases for mothers of pre-school children; however, this is mitigated by higher job quality, human capital endowment and childcare accessibility. Most importantly, the availability of part-time jobs reduces their probability of moving out of the labor force. Women not leaving employment after becoming mothers experience lower wages than women with no pre-school child, and there are no signs of this gap closing 5 years after childbirth. Contrary to previous literature, the wage gap penalty emerges only among women working full-time, thanks to the high protection accorded to part-time jobs in Italy.     

Penalties and payoffs: The short-term economic consequences of human capital acquisition for resettled refugees in the United States

The relationship between refugee investments in human capital and short-run economic outcomes may influence the extent to which refugees invest in human capital that is associated with positive future economic mobility. Using data from the Annual Survey of Refugees from 2016 and 2017 we assess the relationship between recent investments in human capital and hourly wages for employed refugees in the United States. Results suggest that recent job training has a positive effect on hourly wages. In contrast, enrollment in English classes and educational programmes have no short-term positive effects on hourly wages. When combined with the pressure resettled refugees experience to find employment quickly, these results suggest that the lack of short-term wage benefits from English language or educational courses may dissuade refugees from sufficiently investing in the amount of English language or education necessary to promote positive long-term economic mobility.     

Occupational Human Capital and Wages: The Role of Skills Transferability Across Occupations

This paper examines the effect of accumulated human capital, and particularly occupational human capital, on the workers’ wages. Unlike previous studies that apply occupational tenure as a proxy for occupational human capital, this paper applies the concept of Shaw’s (1984) occupational human capital to capture the transferability of occupational skills and estimates a new measure of occupational human capital, so-called occupational investment. Using the National Longitudinal Survey of Youth (NLSY) from 1979 to 2000, the key findings of this paper suggest that occupational skills from the previous jobs can also affect the workers’ wages at the current job and that occupational investment is one of the important sources of wages supporting the Shaw’s original work on wage determination. Specifically, 5 years of (3-digit) occupational investment relative to current occupational tenure could lead to a wage increase of 7.7 to 18.4 %. I also find that the general labor market experience accounts for a large share of workers’ wages.     

Occupations,Human Capital and Skills

Economists have long recognized that occupations can be used as proxies for skills in wage regressions. Yet the potential existence of non-market factors such as discrimination and occupational choice (sorting) on the basis of job attributes that are separate from, but potentially correlated with, wages makes occupations an imperfect control for skills. In this paper, we consider whether inter-occupational wage differentials that are unexplained by measured human capital are indeed due to differences in unmeasured skill. Using the National Compensation Survey, a large, nationally-representative dataset on jobs and ten different components of job requirements, we compare the effects on residual wage variation of including occupation indicators and these skill requirements measures. We find that although these skill requirements vary across 3-digit occupations, occupation indicators decrease wage residuals by far more than can be explained by skill alone. This indicates that “controlling for occupation” does not equate to controlling for only these skill measures, but also for other factors. Additionally, we find that there is considerable within-occupation variation in skill requirements, and that the amount of variation is not constant across skill levels. As a result, including occupation indicators in a wage model introduces heteroskedasticity that must be accounted for. We suggest that caution be applied when using and interpreting occupation indicators as controls in wage regressions.     

How to Get a Longer Job? Roles of Human and Social Capital in the Japanese Labor Market

This article investigates the roles of human and social capital played in the Japanese labor market. Our research question is whether they interact to accelerate or decelerate each other to provide first jobs of a long duration. Based on the literature, we focus on the bonding functions of friends and relatives. Using the 2005 Social Stratification and Social Mobility Survey Data, we measure human capital by educational attainment (college education) and social capital by job search methods (using friends or relatives). The dependent variable is the hazard rate of turnover from the first job. We find that social capital especially benefits those with low human capital (high school graduates). When friends or relatives introduce workers to jobs, high school graduates tended to stay longer in their first jobs and had a lower turnover than college graduates did. This means that social capital decelerated effects of human capital. Therefore, in the Japanese labor market, social capital plays a complementary role in mitigating educational disadvantage.     

OPTIMAL WAGE TAXATION WHEN HUMAN CAPITAL AND EMPLOYMENT ARE ENDOGENOUS

This paper studies how optimal wage tax conclusions from the classic two‐period life cycle model of human capital accumulation are affected by endogenizing the number of taxpaying workers. In the absence of a corrective policy, young individuals underinvest in human capital from a social perspective because tax premiums for transfers to nonworkers are not actuarially adjusted downward for human capital attainment. A combination of wage taxes and wage subsidies can restore proper price signals. Numerical simulations suggest that even modest employment elasticities can be sufficient to substantially impact the magnitudes and even the signs of optimal wage tax rates. (JEL H21, H3, J24)     

Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis

This paper provides new evidence on the increase in wage earnings for men due to marriage and cohabitation (in the literature, commonly referred to as marital and cohabitation wage premiums for men). Using data for a sample of white men from the National Longitudinal Survey of Youth 1979, the paper shows that even after accounting for potential selection bias there is a cohabitation wage premium for men, albeit smaller than the marriage premium. Our analysis shows that a joint human capital hypothesis (a la Benham in J Polit Econ 82(2, Part 2):S57–71, 1974) with intra-household spillover effects of partner’s education can explain the existence of the wage premiums. Our estimates provide some empirical support for the joint human capital hypothesis.     

The causal effect of social capital on income: A new analytic strategy

This study identifies three groups of job seekers in terms of the channels used to search for jobs: the formal channel involving only official procedures to obtain a job, the informal channel using only social contacts to obtain a job, and the joint channel leveraging both social contacts and official procedures. The analysis of a national sample survey of China shows that joint channel users, due to their relatively higher level of social capital, not only make more job search attempts but also obtain higher income than formal channel users. Meanwhile, joint channel users, because of their relative advantages in both human capital and social capital, not only make more job attempts but also obtain higher income than informal channel users. The two comparisons offer a new strategy to test the causal role social capital plays in labour market success, regardless of whether social capital is exogenous or endogenous to human capital.     

THE ACCUMULATION OF HUMAN CAPITAL DURING MARRIAGE BY MALES

Married males have significantly higher wage rates than never-married, widowed, or divorced males, even when differences in educational attainment, experience, race, and so on are controlled for. Evidence presented in this paper suggests that most of the unexplained wage differential associated with marital status in earnings regressions results from males accumulating human capital more rapidly when they are married than when those same males are not married. The hypothesis that married males earn more than unmarried males because marriage facilitates the financing of human capital accumulation is supported by this and other evidence.     

THE IMPACT OF PSYCHOLOGICAL AND HUMAN CAPITAL ON WAGES

Historically, economists have taken the position that psychological capital is either unobservable or immeasurable; thus, heretofore, little evidence has been available on the contribution of psychological capital to wages. Using data drawn from two different waves of the National Longitudinal Survey of Youth, we offer evidence that psychological capital has both a direct effect—via self-esteem—and an indirect effect—through locus of control—on an individual's real wage. We find a person s wage is more sensitive to changes in self-esteem than to comparable alterations in human capital. Both relative wages and human capital contribute to self-esteem.     

WAGE DISCRIMINATION ACROSS ETHNIC GROUPS: EVIDENCE FROM ISRAEL

We investigate wage differentials between ethnic groups in Israel, proposing a new methodology and an illustration based on the latest Israeli census. By using separate wage equations for the various occupations, our methodology allows us to decompose the wage differential into three components: one reflecting human capital differences; one reflecting wage discrimination; and a third indicating occupational segregation. We find that 70 percent of the wage gap is due to segregation, 26 percent to wage discrimination and only 4 percent to human capital differences. Evidence is also found for the existence of duality in the Israeli labor market.     

CAN THE HUMAN CAPITAL APPROACH EXPLAIN LIFE‐CYCLE WAGE DIFFERENTIALS BETWEEN RACES AND SEXES?

Using data from the National Longitudinal Survey of Youth–1979 cohort (NLSY79), this paper shows the importance of postschool human capital investment in describing both gender and racial wage gaps. The empirical results suggest that male-female wage gaps, regardless of race, are mainly caused by gender differences in the human capital production process; generally, men gain more work experience and therefore have lower marginal costs of human capital production. Black-white lifetime wage differentials could partly result from higher implicit interest rates for blacks, while the deterioration of black males' relative economic status as they age can be attributed to higher depreciation rates of their human capital stock. ( JEL J24, J30, C61)     

Off‐farm Work among Rural Households: A Case Study in the Brazilian Amazon

This article analyzes off‐farm work among subsistence‐level farmers in the Santarém region of the Brazilian Amazon. We build on the literature on rural livelihoods in the Global South by exploring how the opportunity to work off the farm is embedded in social relationships. We additionally differentiate our analysis by type of off‐farm work, and examine how other characteristics such as human capital, the available labor supply, and access to infrastructure vary by work outcome. In general, the factors that contribute to more secure, relatively higher‐paying work differ from those important in understanding patterns of lower‐paying, daily wage work. We find that on‐farm social capital, measured as the presence of a co‐resident on the property who works off the farm, increases an individual's probability of working off the farm, but has a stronger effect for lower‐wage work. We also find that the farm owner's relationship to households on the farm property plays a significant role in predicting patterns of off‐farm work. These findings suggest that social capital plays an important role in providing access to employment and therefore to cash income, but that farm‐level social capital does not necessarily provide pathways to stable or high‐paying jobs outside agriculture.     

PRODUCTIVITY GROWTH IN GOODS AND SERVICES ACROSS THE HETEROGENEOUS STATES OF AMERICA

In this study, we examine the importance of multifactor productivity (MFP) growth in goods and services for U.S. States during 1980–2007 by applying the dual growth accounting framework. We find that MFP growth was relatively high and converged in the goods sector, but was low and did not converge in services. Although low growth in MFP in services was due to declining real user cost, particularly in real estate services, the lack of convergence itself was due to variation in wage growth. We also document that while the gap between productivity and wage growth was higher in goods, the two series were more strongly correlated in services. Finally, states with higher initial human capital experienced higher growth in both sectors. (JEL O47, R11)