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Does salaried status affect human capital accumulation?

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Author Info

  • Sheldon E. Haber
  • Robert S. Goldfarb

Abstract

Human capital studies do not usually consider whether an individual is paid an hourly wage or a salary. The authors of this paper develop a conceptual framework that explains why some workers are paid salaries and predicts that salaried workers will invest more in human capital than will hourly workers. In particular, this prediction hinges on the differing effort incentives facing hourly and salaried workers, and their employers, in jobs that are paced versus unpaced. Empirical evidence supporting this prediction and other hypotheses implied by the proposed framework is presented using data on individuals covering a 16-month period in 1984-85 from the Bureau of Census Survey of Income and Program Participation (SIPP), a longitudinal survey. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 48 (1995)
Issue (Month): 2 (January)
Pages: 322-337
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ilr:articl:v:48:y:1995:i:2:p:322-337

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Cited by:
  1. Daniel S. Hamermesh, 2000. "12 Million Salaried Workers Are Missing," NBER Working Papers 8016, National Bureau of Economic Research, Inc.

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