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Specific Investments and Nonlabor Income

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Author Info
Glenn M. MacDonald

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Abstract

In an economy with firm-specific human capital, it is shown that (i) a distribution of nonlabor income will generally induce a distribution of net returns to specific investments; (ii) at the individual level nonlabor income and net returns will be positively related over some range and unrelated otherwise; and (iii) the distribution of net returns is more concentrated than that of nonlabor income.

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Publisher Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
Pages: 225-233
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Handle: RePEc:rje:bellje:v:13:y:1982:i:spring:p:225-233

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  1. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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This page was last updated on 2008-10-9.

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