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Wage Growth, Human Capital And Financial Investment

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  • SARAH BROWN
  • KARL TAYLOR

Abstract

The aim of this paper is to explore the relationship between wage growth, human capital and investment in financial assets at the individual level. We investigate this relationship using data from five waves of the British Household Panel Survey. We exploit panel data enabling us to determine the change in real wages experienced by individuals across four different time horizons, 1995–96, 1995–98, 1995–1700 and 1700–1. Our findings support a positive association between financial assets and wage growth with this relationship becoming more pronounced over time. In addition, our results suggest that investment in financial assets is positively associated with returns to human capital investment.

Suggested Citation

  • Sarah Brown & Karl Taylor, 2005. "Wage Growth, Human Capital And Financial Investment," Manchester School, University of Manchester, vol. 73(6), pages 686-708, December.
    • Handle: RePEc:bla:manchs:v:73:y:2005:i:6:p:686-708
    DOI: 10.1111/j.1467-9957.2005.00472.x
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    References listed on IDEAS

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    1. James Banks & Zoe Oldfield & Matthew Wakefield, 2002. "The distribution of financial wealth in the UK: evidence from 2000 BHPS data," IFS Working Papers W02/21, Institute for Fiscal Studies.
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    Cited by:

    1. Argaw, Bethlehem A. & Maier, Michael F. & Skriabikova, Olga J., 2017. "Risk attitudes, job mobility and subsequent wage growth during the early career," ZEW Discussion Papers 17-023, ZEW - Leibniz Centre for European Economic Research.
    2. Sarah Brown & Karl Taylor, 2006. "Education, Risk Preference and Wages," Working Papers 2006002, The University of Sheffield, Department of Economics, revised Feb 2006.
    3. Checchi, Daniele & Fiorio, Carlo V. & Leonardi, Marco, 2014. "Parents' risk aversion and children's educational attainment," Labour Economics, Elsevier, vol. 30(C), pages 164-175.
    4. Angela Cipollone, 2011. "Education as a Precautionary Asset," Working Papers CELEG 1108, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    5. Sarah Brown & Gaia Garino & Karl Taylor, 2006. "Returns to Education and Risky Financial Investment," Working Papers 2006012, The University of Sheffield, Department of Economics, revised Oct 2006.
    6. Sarah Brown & Aurora Ortiz‐Nuñez & Karl Taylor, 2012. "Parental Risk Attitudes and Children's Academic Test Scores: Evidence from the US P anel S tudy of I ncome D ynamics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 47-70, February.
    7. Santi Budria & Luis Diaz-Serrano & Ada Ferrer-i-Carbonell & Joop Hartog, 2013. "Risk attitude and wage growth: replicating Shaw (1996)," Empirical Economics, Springer, vol. 44(2), pages 981-1004, April.
    8. Maier, Michael & Argaw, Bethlehem A. & Maier, Michael F. & Skriabikova, Olga J., 2016. "Risk attitudes, job mobility and subsequent wage growth during the early career," VfS Annual Conference 2016 (Augsburg): Demographic Change 145677, Verein für Socialpolitik / German Economic Association.

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