Labor Economics Commons^™

Work Organization And High-Paying Jobs, Dylan Nelson, Nathan Wilmers, Letian Zhang

Upjohn Institute Working Papers

High-paying factory jobs in the 1940s were an engine of egalitarian economic growth for a generation. Are there alternate forms of work organization that deliver similar benefits for frontline workers? Work organization varies by type of complexity and degree of employer control. Technical and tacit knowledge tasks receive higher pay for signaling or developing human capital. Higher-autonomy tasks elicit efficiency wages. To test these ideas, we match administrative earnings to task descriptions from job postings. We then compare earnings for workers hired into the same occupation and firm, but under different task allocations. When jobs raise task complexity and autonomy, …

The Decline Of Routine Tasks, Education Investments, And Intergenerational Mobility, Patrick Bennett, Kai Liu, Kjell Salvanes

Upjohn Institute Working Papers

How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.

From Tasks To Riches: A Task-Based Approach To The Determinants Of Wages, Samantha Baradas, Aileen Co, Brian Daguman, Martha Delos Santos

Angelo King Institute for Economic and Business Studies (AKI)

An empirical investigation of the effects of occupational skills, human capital, and other worker characteristics on labor market outcomes is examined in this study. Using the PSA Labor Force Survey and Philippine Standard Occupational Classification (PSOC), the group offers a task-based measure as a proxy for occupational skills. Such problems in measuring skills arise when skill endowments of workers are underivable in a survey dataset. With this, the analysis includes comparing and contrasting models with task-based measures of occupational skills and Mincerian wage models with occupational dummies. Regression analysis found consistent statistically significant positive returns on a change in computational, …

Entitled To Property: Inheritance Laws, Female Bargaining Power, And Child Health In India, Plamen Nikolov, Shahadath Hossain

Economics Faculty Scholarship

Child height is a significant predictor of human capital and economic status throughout adulthood. Moreover, non-unitary household models of family behavior posit that an increase in women’s bargaining power can influence child health. We study the effects of an inheritance policy change, the Hindu Succession Act (HSA), which conferred enhanced inheritance rights to unmarried women in rural India, on child height. We find robust evidence that the HSA improved the height and weight of children. In addition, we find evidence consistent with a channel that the policy improved the women’s intrahousehold bargaining power within the household, leading to improved parental …

Human Capital And Black-White Earnings Gaps, 1996–2017, Owen Thompson

Upjohn Institute Working Papers

This paper estimates the contribution of human capital to the Black-white earnings gap in three separate samples of men spanning from 1966 through 2017, using both educational attainment and performance on standardized tests to measure human capital. There are three main findings. First, the magnitude of reductions in the Black-white earnings gap that occur after controlling for human capital has become much larger over time, suggesting a growing contribution of human capital to Black-white earnings disparities. Second, these increases are almost entirely due to growth in the returns to human capital, which magnify the impact of any racial differences in …

A Language Barrier To Human Capital Development: The Case Of Guatemalan Students, Fidel Pérez Macal

Electronic Thesis and Dissertation Repository

Not being proficient in a school’s predominant language of instruction can represent a language barrier for students’ human capital development. In Guatemala, 24 languages are spoken apart from Spanish, which is the language of instruction in the majority of schools, and about 40 percent of the total population has a non-Spanish language as a mother tongue. National standardized tests show that non-Spanish mother tongue (non-SMT) students are outperformed by SMT students in elementary and secondary schools.

My thesis analyzes whether non-SMT students face a language barrier and traces its source. Two main findings emerge. First, non-SMT students are not yet …

Essays On Criminal Behaviour, Human Capital Formation, And Mental Health, Diego F. Salazar

Electronic Thesis and Dissertation Repository

My thesis consists of three chapters that contribute to the study of some of the negative consequences of incarceration and their relation with the life-cycle choices of juvenile offenders.

Chapter 2 studies the causal relationship between incarceration and mental health problems. In this chapter, I use different matching estimators to identify the causal effects of incarceration over several dimensions of mental health using data from a survey of juvenile offenders, the Pathways to Desistance (PTD) survey. My findings show that being incarcerated for the first time, between 17 and 18 years old, increases depression by at least 0.18 standard deviations …

Essays On Parental Leave And Family Labour Supply, Youjin Choi

Electronic Thesis and Dissertation Repository

This thesis studies married couples' decisions regarding labour supply, fertility, and take-up of parental leave. Importantly, it emphasizes household interactions in a family labour supply framework where husbands and wives jointly make decisions.

In Chapter 2, I describe how differences in married individuals' time allocations between Canada and the U.S. may be related to different parental leave policies in the two countries. First, I document background information on parental leave policies and take-up behaviour in the two countries. Second, I analyze married individuals' time allocations using data from the General Social Survey (GSS) for Canada and American Time Use Survey …

Health Shocks, Human Capital, And Labor Market Outcomes, Francisco Parro, R. Vincent Pohl

Upjohn Institute Working Papers

Health, human capital, and labor market outcomes are linked though complex connections that are not fully understood. We explore these links by estimating a flexible yet tractable dynamic model of human capital accumulation in the presence of health shocks using administrative data from Chile. We find that (i) human capital mitigates the negative labor market effects of health events, (ii) these alleviating effects operate through channels involving occupational choice, the frequency of exposure to health events, and access to health care, and (iii) the effect of health shocks on labor market outcomes is heterogeneous across industries and types of diagnoses.

Stem And The Local Economy: Do Regions Reap The Benefits Of A Stem-Educated Workforce?, Fran Stewart

Employment Research Newsletter

No abstract provided.

Investing In America's Workforce 2017, Brad J. Hershbein

Brad J. Hershbein

From the Day 3 Plenary Lunch of the Fed's Capstone Conference in Austin, TX -- Expanding the Capacity to Invest: Policy, Transparency and Accountability. Investments for workforce development require a foundation of institutional supports that will ensure accountability. This panel, representing diverse perspectives from the public, private and nonprofit sectors, explored the institutions, policies and norms needed to establish, reinforce and facilitate new and increased investments.

Genes, Education, And Labor Market Outcomes: Evidence From The Health And Retirement Study, Nicholas W. Papageorge, Kevin Thom

Upjohn Institute Working Papers

Recent advances have led to the discovery of specific genetic variants that predict educational attainment. We study how these variants, summarized as a genetic score variable, are associated with human capital accumulation and labor market outcomes in the Health and Retirement Study (HRS). We demonstrate that the same genetic score that predicts education is also associated with higher wages, but only among individuals with a college education. Moreover, the genetic gradient in wages has grown in more recent birth cohorts, consistent with interactions between technological change and labor market ability. We also show that individuals who grew up in economically …

The Gender Salary Gap And Race: A Case Of College-Educated Individuals, Giannina Celis

Honors Projects

Despite the fact that today, women constitute the majority of higher education graduates, (U.S. Department of Education 2016) they still earn considerably less than their male counterparts.This study examines some of the different factors that affect salary differentials by race and gender for the college-educated population. Using data from the The National Survey of College Graduates (NSCG), I estimate a series of OLS regressions with controls for geographic location, social demographics, human capital development and occupation to see how they work together to explain these differences in pay.

Does Human Capital Play A Role In The Growing Income Inequality In The Oecd Countries?, Jordan A. Cram

Senior Theses and Projects

Researchers have tried to determine reasons for the growing income inequality in the OECD countries, but human capital is not a reason typically addressed. This paper empirically seeks to determine a relationship between human capital and income inequality using multiple regression analysis. I hypothesize a negative relationship; meaning increases in the independent variable, average human capital in a country, will cause a decrease in the dependent variable, income inequality due to the idea that increases in education should increase the incomes of the poor more than those of the rich. Income inequality will be measured by the Gini coefficient and …

The Stem Dilemma: Skills That Matter To Regions, Fran Stewart

Upjohn Press

Fran Stewart dives into the murky waters where education and economic goals meet to confront several key issues facing policymakers and educators, including the role of public investment in human capital, the types of human capital investment that provide the greatest public return, and whether those investments should vary by region.

She shows that not all high-paying jobs require STEM skills; that not all good-paying, highly skilled STEM jobs require college degrees; and that "soft skills" are important for STEM as well as other high-paying jobs.

An Empirical Study Of Earnings Of Immigrants And Native-Born Americans In The U.S. Labor Market Given Different Levels Of Educational Attainment, Yuli P. Gomez Bravo

Applied Economics Theses

This paper will compare the Lifetime wage earnings of immigrants and native-born citizens in the U.S. for the years 2000-2010 according to educational attainment using cross-sectional data. The data obtained through IPUMS-CPS Integrated Public Use of Microdata Series, University of Minnesota. The findings of investment in Human Capital of Mincer (1958), the Immigrants earnings distribution of Chiswick and Miller (2006), the Pareto’s law of income distribution, and the immigrants investment in human capital model by Duleep and Regets (1999) are the theoretical basis in which this study will be ruled. The empirical evidence suggests that immigrants who invest in education …

Bullying And Human Capital Accumulation: Evidence From The National Longitudinal Survey Of Youth, 1997, Jessica Lum

Theses and Dissertations

Data from the National Longitudinal Survey of Youth, 1997 (NLSY97) is used to study the effect of bullying on human capital accumulation. Findings suggest that adolescent bullying has a significant and negative impact on the highest educational level attained, as well as income earned as an adult.

The Job Of Human Capital: What Occupational Data Reveal About Skill Sets, Economic Growth And Regional Competitiveness, Lillian Frances Stewart

ETD Archive

A region's workforce has been described as its greatest asset. Guided by human capital theory and new growth theory, regions have pursued economic development policies to increase the number of college-educated workers and expand the pool of STEM -- science, technology, engineering, and math -- talent. Academic literature and policy interventions have focused on a region's human capital in terms of educational attainment instead of a more fine-grained definition of human capital based on skills and competencies. This dissertation integrates economic and business theory and combines three federal databases to explore regional human capital assets. Findings suggest that policymakers may …

Diferencias Territoriales En El Retorno A La Educación En Chile: Evidencia Para Las Regiones Del Biobío Y Metropolitana, Genaro Candia, Andres Acuña

Andrés A. Acuña

College-High School Wage And Human Capital Price Differentials, And The Role Of Mobility For Local Wages In The U.S., Eda Bozkurt

Electronic Thesis and Dissertation Repository

This thesis contains three studies on national and local college wage premia, skill premia, and implications of geographic mobility for local wages. The second chapter investigates the reasons for problems with the standard supply-demand model of skill premium. This chapter shows that the problems of canonical model can be explained by mismeasurement of skills and skill prices. The standard approach assumes changes in wages are driven by changes in skill prices alone, and not by skill levels. We re-estimate the canonical model allowing for changes in skill levels over time. The results show that the demand changes have a much …

Talent 2025: Assessment Of The West Michigan Talent Development System, George Erickcek, Brian Pittelko, Bridget Timmeney, Brad Watts

George A. Erickcek

No abstract provided.

Employment Relations And Wages: What Can We Learn From Subjective Assessments?, Marta Lachowska

Marta Lachowska

This paper studies the link between hourly wages and workers’ subjective assessments of how easy it would be to find another job as good as the present one, and how easy it would be for an employer to replace an employee. First, using high-quality data, I study the correlates of these two assessments. Second, I study whether respondents who report better outside opportunities and respondents who think they are difficult to replace receive higher wages. The results appear to be consistent with predictions of at least three theoretical frameworks: human capital theory, search theory, and a “locus of control” model.

Dislocated Worker Human Capital Depreciation And Recovery, Kevin Hollenbeck

Kevin Hollenbeck

Previous studies have estimated the "human capital depreciation" of women re-entering the work force after voluntary, lengthy interruptions. Those studies have found reduced real wages and furthermore the decrease is positively related to the length of the interruption. Upon re-entry, however, real wages grow rapidly as human capital is restored. This paper develops a model of the wage histories of dislocated workers. Similar to labor force re-entrants, those dislocated workers who become re-employed would experience wages below their final wage prior to dislocation and the decrease should be associated with the length of dislocation. However, the model suggests that since …

Return On Investment In Workforce Development Programs, Kevin Hollenbeck

Kevin Hollenbeck

Under more and more fiscal scrutiny because of shrinking state and local budgets, workforce development programs are being asked to estimate their return on investment (ROI). This paper introduces basic concepts of ROI in workforce development programs. It distinguishes ROIs estimated for workforce programs from those that are estimated for financial investments or capital projects. The paper furthermore exposits the basic ingredients of an ROI study—identification of the treatment and time periods of analysis, identification of the net impacts of the program, and identification of net costs. Finally, the paper presents results from the estimation of the ROI for postsecondary …

Effects Of Husband’S Education On Wife’S Earnings: The Recent Evidence, Humenghe Zhao

Gettysburg Economic Review

This paper aims to examine the relationship between husband’s education and his wife’s earnings. The study builds upon previous literature revolving around the relationship between a woman’s human capital and her husband’s earnings. Using pooled cross-sectional data from the Current Population Survey (CPS), I adjust the OLS wage model to estimate whether a man’s human capital has positive effects on his wife’s earnings. Two major hypotheses concerning the correlation between spousal education and earnings are cross-productivity effect between couples and assortative mating. Using the original regression model, I also estimate a sub-sample designed to restrict the effects of positive assortative …

Determinantes De La Brecha Salarial Por Género Y Segregación Ocupacional: Áreas Metropolitanas De Colombia 2009 2012, Diego Alejandro Parga Castrillón, Hamilton Herbert Galindo Lúligo

Economía

La demanda laboral y el incremento de la población han sido temas determinantes del acceso laboral en Colombia en la última década, enmarcados en situaciones de discriminación salarial por género y segregación ocupacional, haciendo necesario el estudio de la relación que existe entre ellas. Esta investigación pretende obtener resultados del comportamiento de la brecha salarial y como dentro de sus determinantes se pondera la segregación ocupacional para las 13 áreas metropolitanas del país en los periodos del 2008 al 2012. Se basa en distintas investigaciones propuestas por los diversos teóricos que evaluaron la dimensión salarial por raza y sexo, y …

Examining The Afqt As A Proxy For Human Capital, Jaret L. Kanarek

Undergraduate Economic Review

I examine whether the Armed Forces Qualifications Test (AFQT) is a suitable proxy for human capital skills by testing the hypothesis that those factors most germane to human capital skills acquisition will most affect AFQT score. Using data from the National Longitudinal Survey of the Youth and OLS regression analysis, I find that strict and loose human capital factors are robust determinants of AFQT score, and thus the AFQT is a suitable proxy for human capital skills. However, its use as such requires specification that the AFQT is not a catchall for human capital factors, as it is significantly related …

The Effects Of Background Factors On Afqt Score, Jaret Kanarek

Honors Projects

The introduction of the National Longitudinal Survey of the Youth (NLSY) 1979 and 1997 cohorts made Armed Forces Qualifications Test (AFQT) score data widely available and has thus dramatically increased its use in academic research. However, there is strong evidence that a wide variety of background factors, such as poverty status, race, and parent’s education level, affect AFQT score. Human capital theory, in conjunction with the pathways framework, suggests that these background factors have both direct and indirect effects on AFQT score. The focus of this research is measuring some of the important direct and indirect pathways through which background …

Youth Aptitude As A Predictor Of Adulthood Income, Jaret Kanarek

Undergraduate Economic Review

I examine the relationship between youth aptitude and adulthood income. Using the National Longitudinal Survey of the Youth 1979 cohort and OLS regression analysis, I test the hypothesis that a higher 1981 Armed Forces Qualifications Test (AFQT) score is directly related to a higher income in 2010, ceteris paribus. First, a single regression equation is run for educational attainment subgroups at the time of taking the AFQT. Second, a regression equation including total lifetime educational attainment, and one that excludes it, are run to examine potential co-linearity between AFQT score and educational attainment. The results show that AFQT is significant …

Human Capital Index Series, Vicente German-Soto

Vicente German-Soto

Database of Human Capital index for the Mexican States, 1960-2008.