The Experience-Earnings Profile: Productivity-Augmenting or Purely Contractual? Evidence from the UK

We test the human capital interpretation of the experience-earnings profile. Does the upward sloping portion of the experience-earnings profile reflect on-the-job training which in turn causes the experience-productivity profile to slope upwards, or do purely contractual factors determine the nature of life-cycle earnings. Herein, we provide additional evidence on the relationship between productivity and earnings by examining earnings differentials in the UK academic labor market for economists. Using a test first suggested by Mincer, we find that the empirical results are consistent with human capital theory. We find that, although the positive relationship between earnings and experience persists when individual productivity measures are included in the salary equations for lecturers and senior lecturers, the positive relationship becomes statistically insignificant when the same productivity measures are included in the salary equations for professors. For lecturers and senior lecturers, the experience-salary profile properly reflects the structure of the national pay scale rather than variations in individual research productivity. At the professor level, where individual salaries are not determined by a pay scale, the data support the human capital explanation of the positive experience-earnings profile.

Earnings Differentials of Seafarers

I investigate the earnings differentials among union and nonunion seafarers, across seafarer occupations, and with respective to other transport operatives. The empirical results suggest that the union and nonunion weekly earnings of captains/mates are comparable, and the union earnings gap for sailors/deckhands is positive. The union (nonunion) weekly earnings of captains/mates are 14.7 (30.5) percent greater than those of sailors/deckhands; the union weekly earnings of captains/mates (sailors/deckhands) are 12.6% greater (9.5% less) than those of truck drivers; and the nonunion weekly earnings of captains/mates (sailors/deckhands) are 33.0% greater (6.2% less) than those of truck drivers. The sailor/deckhand and truck driver earnings differentials are contrary to the general belief that the earnings of truck drivers are less than those of other operative occupations involved in transporting intermodal cargo.

Personal income taxation under mobility, exogenous and endogenous welfare weights, and asymmetric information

This paper analyses how governments should tax labour income accruing to a group of highly skilled and geographically mobile individuals who divide their time or career between several jurisdictions. The analysis differs from previous models on migration and taxation by addressing optimal regulation when agents work for several principals. Optimal taxation is developed for social welfare functions with exogenous and endogenous welfare weights. Marginal income taxes are applied for screening purposes, and the rates are lower with endogenous than with exogenous welfare weights. Received: 22 January 1998/Accepted: 3 July 1999)     

Family structure and child outcomes in the USA and Sweden

Previous research shows that living in a non-intact family is associated with educational disadvantages. This paper compares the relationships between childhood family structure, schooling, and earnings in Sweden and the USA. This comparison is interesting because both family structure and public policies differ significantly. We find a negative relationship between living in a non-intact family and child outcomes, and the estimates are remarkably similar in both countries. After using sibling-difference models, the correlation with family structure is no longer significant. These results cast doubt on the causal interpretation of the negative relationship between non-intact family structures and child outcomes.     

College students’ attitudes toward abortion and commitment to the issue

Male and female participants were surveyed on abortion attitudes, commitment, and abortion experience. Results revealed a normal distribution of abortion attitudes rejecting the notion that the vast majority of the sample would have significantly pro-choice views. No significant difference was found in overall abortion attitudes of males vs. females, however, individuals with direct abortion experience were found to have significantly stronger pro-choice attitudes than individuals without direct abortion experience. Overall, college students reported a moderate degree of commitment to the issue of abortion. Females were significantly more committed than males, individuals with direct abortion experience were significantly more committed than individuals without direct abortion experience, and individuals with more extreme abortion attitudes were significantly more committed than those with weaker, more ambivalent, attitudes. No significant difference was found in level of commitment between pro-choice and pro-life individuals.