scholarly journals Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics

2014 ◽  
Vol 104 (6) ◽  
pp. 1551-1596 ◽  
Author(s):  
Jesper Bagger ◽  
François Fontaine ◽  
Fabien Postel-Vinay ◽  
Jean-Marc Robin
Keyword(s):  
Human Capital ◽  
Job Search ◽  
Capital Accumulation ◽  
Wage Growth ◽  
Search Model ◽  
Human Capital Accumulation ◽  
Wage Dynamics ◽  
Equilibrium Search ◽  
Individual Level ◽  
Wage Increases

We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity, and individual-level shocks. Wage growth is decomposed into contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers. The contribution from job search to wage growth, both within and between jobs, declines over the first ten years of a career—the “job-shopping” phase of a working life—after which workers settle into high-quality jobs using outside offers to generate gradual wage increases, thus reaping the benefits from competition between employers. (JEL J24, J31, J63, J64)

scholarly journals Wage Growth Due to Human Capital Accumulation and Job Search: A Comparison between the United States and Germany

ILR Review ◽  
2007 ◽  
Vol 60 (4) ◽  
pp. 562-586 ◽  
Author(s):  
Uta Schönberg
Keyword(s):  
United States ◽  
Human Capital ◽  
Labor Market ◽  
Job Search ◽  
Capital Accumulation ◽  
Wage Growth ◽  
The United States ◽  
Human Capital Accumulation ◽  
Specific Human Capital ◽  
General Human Capital

This paper compares the sources of wage growth of young male workers in two countries with very different labor market institutions, the United States and Germany. The author first develops a simple method for decomposing wage growth into components due to general human capital accumulation, firm-specific human capital accumulation, and job search. The empirical analysis uses data from administrative records (Germany) and the National Longitudinal Survey of Youth (United States) for cohorts entering the labor market in the late 1970s and early 1980s. Although the two countries differed substantially in mobility rates, they were similar in the sources of wage growth, with general human capital accumulation being the most important single source and job search accounting for an additional 25% or more of total wage growth. There is no evidence that returns to firm-specific human capital accumulation were higher for German apprentices than for U.S. high school dropouts or graduates.

scholarly journals HUMAN CAPITAL, AGGREGATION, AND GROWTH

2010 ◽  
Vol 14 (2) ◽  
pp. 189-211 ◽  
Author(s):  
Jakub Growiec
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Knowledge Spillovers ◽  
Human Capital Accumulation ◽  
Education Spending ◽  
Cross Sectional ◽  
Individual Level ◽  
Long Run ◽  
Mincer Equation ◽  
The Individual

Human capital is embodied in people of different generations whose lifetimes are finite. We show that the finiteness of people's lives precludes human capital accumulation from driving long-run aggregate economic growth unless sufficiently strong externalities from aggregate human capital are introduced. Two possible channels for carrying forward such externalities are (i) knowledge spillovers and (ii) public education spending. Our findings shed new light on the foundations of the Uzawa–Lucas growth model. We also show that the cross-sectional Mincer equation, generated by a linear human capital accumulation equation at the individual level, does not carry forward to aggregate data.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

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