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Endogenous Growth, Human Capital, and Industry Wages

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Author Info
Winter-Ebmer, Rudolf

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Abstract

Lucas' model (1988) of external effects of human capital formation is taken as a starting point for looking at the impact of human capital on wages. Even though most empirical tests of New Growth Theory are made using time-series and cross-sections of countries--with good reasons--I suggest a microeconometric approach in order to test Lucas' basic assumption of external effects of human capital. As a first step, internal effects of education are filtered out by using wage functions for individuals in Austria. In the second step, resulting industry wage premiums are regressed on industry-specific characteristics and, above all, on average human capital in the industry to account for external effects of human capital. Copyright 1994 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

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Publisher Info
Article provided by Blackwell Publishing in its journal Bulletin of Economic Research.

Volume (Year): 46 (1994)
Issue (Month): 4 (October)
Pages: 289-314
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Handle: RePEc:bla:buecrs:v:46:y:1994:i:4:p:289-314

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  1. Erling Barth & Josef Zweimuller, 1992. "Labor Market Institutions and the Industry Wage Distribution: Evidence from Austria, Norway, and the U.S," Institute for Research on Labor and Employment, Working Paper Series 1067, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  2. Shields, Michael P., 2008. "Why Should State Government Invest in College Education? An Equilibrium Approach for the US in 2000," IZA Discussion Papers 3569, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Chris Sakellariou & Ramin Maysami, 2004. "Lucas type external effects of human capital: strong evidence using microdata," Applied Economics Letters, Taylor and Francis Journals, vol. 11(6), pages 343-346, May. [Downloadable!] (restricted)
  4. Josef Zweimuller & Erling Barth, 1992. "Bargaining Structure, Wage Determination, and Wage Dispersion in 6 OECD-Countries," Institute for Research on Labor and Employment, Working Paper Series 1074, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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  5. Kevin Reilly & Luisa Zanchi, 2002. "Industry Wage Differentials: How Many, Big and Significant Are They?," Labor and Demography 0209001, EconWPA. [Downloadable!]
  6. Rudolf Winter-Ebmer & Josef Zweimueller, . "Intra-firm Wage Dispersion and Firm Performance," IEW - Working Papers iewwp008, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
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