In this Paper we extend the standard human capital earnings function to include dispersion in the rate of return to schooling by treating the return as a random coefficient. One motivation is that if dipping further into the ability distribution has brought about the increase in supply of...

This Paper provides microfoundations for wage compression by modelling wage-setting in a world of heterogeneous workers and firms. Workers are differentiated by observable innate ability. A high-ability worker confers on a firm an externality, since their ability raises the average level of...

In the Netherlands auditors can be trained in a part-time educational track in which students combine working and studying or in a full-time educational track. The former training is relatively firm-specific whereas the latter training is relatively general. Applying human capital theory, we...

In a restructuring economy on-the-job training plays important role not only in raising the general level of human capital but in retooling workers for the new sectors of economy. The amount of on-the-job training in Russia has however been unsatisfactorily low compared to other countries. Main...

This paper studies skill-neutral technological changes in an economy where workers differ with respect to their abilities to acquire skills, implying increasing marginal costs of educating the work force. Our main result is that productivity slowdown and increasing wage dispersion can be...

In a search model of production, where agents accumulate heterogenous amounts of human capital, an individual worker’s wage depends on average human capital in the searching population. Based on this model, this paper estimates a Mincerian wage equation augmented with terms for average human...

This study analyses the effect of public sector sponsored continuous vocational training and retraining in East Germany after unification with West Germany in 1990.

International capital mobility and economic restructuring have brought training and skills acquisition to the forefront of policy dialogues. Taiwan has gone beyond most countries in promoting vocational education and setting strict quotas for schooling. Although the education plans do not have...

A Quality-adjusted specification of labor is suggested which allow firms training to effect labor efficiency. To assess the cost and productivity effects, this specification is integrated into a flexible neoclassical cost function.

The aim of this research is to analyse the wage differentials between various groups of immigrants and the Swiss workers.