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An Ordered Response Model for Allocation and Earnings

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  • Hartog, Joop

Abstract

An ordered-response model for the allocation of individuals to jobs differing in degree of difficulty and complexity is estimated. Earnings differentials are estimated with an earnings fun ction exhibiting interaction between job level and individual charact eristics. The index of comparative advantage derived from it is added to the ordered-response model and clearly suggests that allocation i n the labor market follows comparative advantage. Allocation appears sensitive to the state of the local labor market. The model is also u sed to estimate the effect of elimination of less desirable variables (family background, gender, state of the labor market). Copyright 1988 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Hartog, Joop, 1988. "An Ordered Response Model for Allocation and Earnings," Kyklos, Wiley Blackwell, vol. 41(1), pages 113-141.
    • Handle: RePEc:bla:kyklos:v:41:y:1988:i:1:p:113-41
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    Cited by:

    1. Wim Vijverberg & Joop Hartog, 2010. "On the distribution of job characteristics: an analysis of the DOT data," Applied Economics, Taylor & Francis Journals, vol. 42(14), pages 1747-1760.
    2. Joop Hartog & Ada Ferrer-i-Carbonell & Nicole Jonker, 2000. "On a Simple Survey Measure of Individual Risk Aversion," Tinbergen Institute Discussion Papers 00-074/3, Tinbergen Institute.
    3. Inmaculada García & José Alberto Molina, 1999. "How do workers decide their jobs? The influence of income, wage and job characteristics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 189-204.
    4. Groeneveld, Sandra & Hartog, Joop, 2004. "Overeducation, wages and promotions within the firm," Labour Economics, Elsevier, vol. 11(6), pages 701-714, December.
    5. Irene Hueter, 2016. "Latent Instrumental Variables: A Critical Review," Working Papers Series 46, Institute for New Economic Thinking.
    6. Peter Ebbes & Michel Wedel & Ulf Böckenholt & Ton Steerneman, 2005. "Solving and Testing for Regressor-Error (in)Dependence When no Instrumental Variables are Available: With New Evidence for the Effect of Education on Income," Quantitative Marketing and Economics (QME), Springer, vol. 3(4), pages 365-392, December.
    7. Ying Sophie Huang & Carl R. Chen, 2013. "Are college chief executives paid like corporate CEOs or bureaucrats?," Applied Economics, Taylor & Francis Journals, vol. 45(21), pages 3035-3043, July.

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