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Empirical evidence on occupation and industry specific human capital

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  • Sullivan, Paul

Abstract

This paper presents instrumental variables estimates of the effects of firm tenure, occupation specific work experience, industry specific work experience, and general work experience on wages using data from the 1979 Cohort of the National Longitudinal Survey of Youth. The estimates indicate that both occupation and industry specific human capital are key determinants of wages, and the importance of various types of human capital varies widely across one-digit occupations. Human capital is primarily occupation specific in occupations such as craftsmen, where workers realize a 14% increase in wages after five years of occupation specific experience but do not realize wage gains from industry specific experience. In contrast, human capital is primarily industry specific in other occupations such as managerial employment where workers realize a 23% wage increase after five years of industry specific work experience. In other occupations, such as professional employment, both occupation and industry specific human capital are key determinants of wages.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 3 (June)
Pages: 567-580

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Handle: RePEc:eee:labeco:v:17:y:2010:i:3:p:567-580

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Wage growth Specificity of human capital Returns to tenure;

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Citations

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Cited by:
  1. Beatrice Brunner & Andreas Kuhn, 2010. "The Impact of Labor Market Entry Condition on Initial Job Assignment, Human Capital Accumulation, and Wages," NRN working papers 2010-15, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  2. Ritter, Moritz, 2009. "Offshoring and Occupational Specificity of Human Capital," MPRA Paper 19671, University Library of Munich, Germany.
  3. Brunner, Beatrice & Kuhn, Andreas, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles," IZA Discussion Papers 4601, Institute for the Study of Labor (IZA).
  4. Barbara Mueller & Juerg Schweri, 2012. "The returns to occupation-specific human capital - Evidence from mobility after training," Economics of Education Working Paper Series 0081, University of Zurich, Institute for Strategy and Business Economics (ISU).
  5. Shintaro Yamaguchi, 2009. "Formation of Heterogeneous Skills and Wage Growth," Department of Economics Working Papers 2009-13, McMaster University.
  6. Beartice Brunner & Andreas Kuhn, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals’s Long-Run Wage Profiles," NRN working papers 2009-29, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  7. Beatrice Brunner & Andreas Kuhn, 2009. "To shape the future: How labor market entry conditions affect individuals' long-run wage profiles," IEW - Working Papers 457, Institute for Empirical Research in Economics - University of Zurich.
  8. Robert I. Lerman, 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," Working Papers 2012-18, American University, Department of Economics.
  9. Guido Matias Cortes, 2012. "Where Have the Routine Workers Gone? A Study of Polarization Using Panel Data," The School of Economics Discussion Paper Series 1224, Economics, The University of Manchester.
  10. Lerman, Robert I., 2012. "Can the United States Expand Apprenticeship? Lessons from Experience," IZA Policy Papers 46, Institute for the Study of Labor (IZA).
  11. Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2012. "Occupational Mobility and the Returns to Training," Working Papers tecipa-444, University of Toronto, Department of Economics.
  12. Montserrat Vilalta-Bufi, 2008. "On the industry experience premium and labor mobility," Working Papers in Economics 208, Universitat de Barcelona. Espai de Recerca en Economia.

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