Beruflich Dokumente
Kultur Dokumente
Human Capital
Human Capital Theory: It implies that the differences in average level of wages
across enterprises are primarily due to differences in worker characteristics that
are linked to productivity
Firm Effects are the coefficients on the firm specific intercepts in a wage equation
If HCT is correct, firm effects estimated controlling for human capital should have
much lower dispersion than firm effects estimated without such controls
Results from (i) a survey of Indiana Manufacturing Plants and (ii) a longitudinal
wage survey of executives of large US Corporations both show that Human
Capital play only a very small role in explaining firm wage effects
Compensating Differentials
If compensating differences explain the results, high-wage firms should not
enjoy lower quit rates
Contradictions can be studied from Parsons 1978, Freeman 1980, Akerlof
et al. 1989
In the Indiana Dataset, it is observed that high wage employees had lower
quit rates, lower intention to quit and higher satisfaction with wages
Levine (1991)
Kreuger and Summers have found that controlling for fringe benefits and
working conditions made no contribution to explaining wage differences
across industries (1998)
Brown and Medoff found that controls for human capital and compensating
differences have little effect on estimated wage differences between
companies of different sizes
Rent Sharing Theories
A company that gains access to a new technology with higher productivity
may be forced to share some fraction of new rents with its current
workforce
Unlike the above three theories, a positive correlation between changes in
productivity and relative wages is consistent with Rent Sharing Theories
It is quite contrasting to note that RST suggest that workers at unionized
businesses will be more successful in capturing rents than in nonunionized setting