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Measuring Human Capital And Its Effects On Wage Growth

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  • Rusty Tchernis

Abstract

Ever since Mincer, years of labour market experience were used to approximate individual's general human capital, while years of seniority were used to approximate job‐specific human capital. This specification is restrictive because it assumes that starting wages at a new job depend only on job market experience. In this paper, I investigate the effects of human capital on wage growth by using a more flexible specification of the wage equation, which allows for a rich set of information on past employment spells to affect the starting wages. In addition, I endogenize the labour mobility decision. In order to illuminate the effects of human capital accumulation patterns on wage growth, I compare counterfactual career paths for representative individuals.

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  • Rusty Tchernis, 2010. "Measuring Human Capital And Its Effects On Wage Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 362-387, April.
    • Handle: RePEc:bla:jecsur:v:24:y:2010:i:2:p:362-387
    DOI: 10.1111/j.1467-6419.2009.00617.x
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    References listed on IDEAS

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    6. Pietro Giorgio Lovaglio, 2010. "The Estimation Of Human Capital By Administrative Archives In A Static And Longitudinal Perspective: The Case Of Milan," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 280-308, April.
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    9. Salem Gheit, 2022. "A Stochastic Frontier Analysis of the Human Capital Effects on the Manufacturing Industries’ Technical Efficiency in the United States," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(3), pages 215-238, July.
    10. Daniel L. Millimet & Michael Nieswiadomy & Daniel Slottje, 2010. "Detailed Estimation Of Worklife Expectancy For The Measurement Of Human Capital: Accounting For Marriage And Children," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 339-361, April.

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