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Occupational Differences in the Determination of U.S. Workers’Earnings: Both the Human Capital and the Structured Labor Market Hypotheses Are Useful in Analysis

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  • Nan L. Maxwell

Abstract

. Using the older men's panel of the National Longitudinal Surveys (n = 5,000), path analysis and occupationally stratified samples, an empirical examination is made of the relative role of the human capital hypothesis and the structured labor market hypothesis in the determination of earnings. Results suggest that both hypotheses are useful in achieving an understanding of the process. There is a primary labor market (jobs with high wages, job security and mobility on promotional ladders) with individual productivity differences largely consequent from human capital differentials (investments in education, training and experience). There is also a secondary labor market (jobs with low wages, high turnover poor working conditions) in which human capital investments are not rewarded, dominated by structural influences (e.g. unionization) that, rather than individual productivity differences, explain the process by which earnings are determined.

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  • Nan L. Maxwell, 1987. "Occupational Differences in the Determination of U.S. Workers’Earnings: Both the Human Capital and the Structured Labor Market Hypotheses Are Useful in Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 46(4), pages 431-443, October.
    • Handle: RePEc:bla:ajecsc:v:46:y:1987:i:4:p:431-443
    DOI: 10.1111/j.1536-7150.1987.tb01990.x
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    Cited by:

    1. Magali Jaoul-Grammare, 2007. "The labour market segmentation: empirical analysis of Cain's theory (1976)," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 337-341.
    2. Kinvi D.A. Logossah, 1994. "Capital humain et croissance économique : une revue de la littérature," Économie et Prévision, Programme National Persée, vol. 116(5), pages 17-34.
    3. Damien Joseph & Soon Ang & Sandra A. Slaughter, 2015. "Turnover or Turnaway? Competing Risks Analysis of Male and Female IT Professionals’ Job Mobility and Relative Pay Gap," Information Systems Research, INFORMS, vol. 26(1), pages 145-164, March.
    4. Valérie Canals & Claude Diebolt & Magali Jaoul-Grammare, 2015. "Education, productivité et gain. Retour sur les approches critiques de l’enchaînement causal de la théorie du capital humain," Working Papers of BETA 2015-22, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Magali Jaoul-Grammare, 2011. "L’évolution de la segmentation du marché du travail en France : 1973-2007," Working Papers of BETA 2011-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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