Technological Change and the Age-Earnings Profile: Evidence from the International Merchant Marine, 1861-1912
AbstractModels of vintage-specific learning predict systematic cross-technology differences in earnings among otherwise identical employees. This paper outlines a vintage learning model based on Chari and Hopenhayn's (1991, Journal of Political Economy) exposition. The model predicts that (i) the age-earnings profile is steeper in new technologies, (ii) the discounted present value of lifetime earnings are equalized across technologies, and (iii) the age-earnings profile in newer technologies becomes flatter over time. These predictions find support from a data set spanning a 52 year period beginning in 1861 that matches over 141,000 wage contracts accepted by merchant mariners to the technologies with which they worked. As a by-product, the paper reports some of the oldest evidence yet made available of the returns to literacy. (Copyright: Elsevier)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.
Volume (Year): 6 (2003)
Issue (Month): 3 (July)
Contact details of provider:
Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101
Web page: http://www.EconomicDynamics.org/review.htm
More information through EDIRC
Find related papers by JEL classification:
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier.
- Chari, V V & Hopenhayn, Hugo, 1991. "Vintage Human Capital, Growth, and the Diffusion of New Technology," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1142-65, December.
- DiNardo, John E & Pischke, Jorn-Steffen, 1997.
"The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(1), pages 291-303, February.
- Dinardo, J.E. & Pischke, J.S., 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," Working papers 96-12, Massachusetts Institute of Technology (MIT), Department of Economics.
- John E. DiNardo & Jorn-Steffen Pischke, 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," NBER Working Papers 5606, National Bureau of Economic Research, Inc.
- Bruinshoofd,Allard & Weel,Bas,ter, 1998. "Skill-biased technical change: On technology and wages in the Netherlands," Research Memoranda 021, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Boyan Jovanovic, 1998.
"Vintage Capital and Inequality,"
NBER Working Papers
6416, National Bureau of Economic Research, Inc.
- Zafar Mueen Nasir & Hina Nazli, 2000. "Education And Earnings In Pakistan," PIDE-Working Papers 2000:177, Pakistan Institute of Development Economics.
- repec:fth:starer:9816 is not listed on IDEAS
- Grubb, Farley, 1985. "The Market for Indentured Immigrants: Evidence on the Efficiency of Forward-Labor Contracting in Philadelphia, 1745–1773," The Journal of Economic History, Cambridge University Press, vol. 45(04), pages 855-868, December.
- Alan B. Krueger, 1991.
"How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-1989,"
NBER Working Papers
3858, National Bureau of Economic Research, Inc.
- Krueger, Alan B, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 33-60, February.
- Lothian, James R & Taylor, Mark P, 1996. "Real Exchange Rate Behavior: The Recent Float from the Perspective of the Past Two Centuries," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 488-509, June.
- Goldin, Claudia & Katz, Lawrence, 2000.
"Education and Income in the Early 20th Century: Evidence from the Prairies,"
2624456, Harvard University Department of Economics.
- Claudia Goldin & Lawrence F. Katz, 1999. "Education and Income in the Early 20th Century: Evidence from the Prairies," NBER Working Papers 7217, National Bureau of Economic Research, Inc.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- repec:fth:starer:98-16 is not listed on IDEAS
- Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
- Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation for Research in Economics, Yale University.
- Hanoch, Giora & Honig, Marjorie, 1985. ""True" Age Profiles of Earnings: Adjusting for Censoring and for Period and Cohort Effects," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 383-94, August.
- Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
- Claudia Goldin & Lawrence F. Katz, 1996.
"The Origins of Technology-Skill Complementarity,"
NBER Working Papers
5657, National Bureau of Economic Research, Inc.
- Richard Rogerson, 2005. "Sectoral Shocks, Specific Human Capital and Displaced Workers," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 89-105, January.
- Huw Lloyd-Ellis, 1999. "Endogenous Technological Change and Wage Inequality," American Economic Review, American Economic Association, vol. 89(1), pages 47-77, March.
- Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-83, August.
- Greenwood, J. & Yorukoglu, M., 1996.
RCER Working Papers
429, University of Rochester - Center for Economic Research (RCER).
- Greenwood, Jeremy & Yorukoglu, Mehmet, 1997. "1974," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 46(1), pages 49-95, June.
- Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.