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Wage Growth, Human Capital And Financial Investment

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Author Info
SARAH BROWN
KARL TAYLOR

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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. Copyright Blackwell Publishing Ltd and The University of Manchester, 2005.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9957.2005.00472.x
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Publisher Info
Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 73 (2005)
Issue (Month): 6 (December)
Pages: 686-708
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Handle: RePEc:bla:manchs:v:73:y:2005:i:6:p:686-708

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1463-6786

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  1. Sarah Brown & Karl Taylor, 2006. "Education, Risk Preference and Wages," Working Papers 2006002, The University of Sheffield, Department of Economics, revised Feb 2006. [Downloadable!]
  2. 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. [Downloadable!]
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This page was last updated on 2009-12-19.


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