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An investigation into the role of human capital competences and their pay-off

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Author Info
Heijke,Hans
Meng,Christoph
Ramaekers,Ger (ROA rm)

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Abstract

Learning is possible both in school and later on when working. The learning process is thereby dependent on the context wherein it takes place. This implies that in particular three groups of competences can be distinguished. First of all, competences acquired in school, which are of direct use in later work, secondly, competences acquired in school, which facilitate acquiring new competences after graduation from school and finally, competences acquired mainly in a working context. Using a unique dataset on Italian university graduates, the target of this paper is to show that these three competences can indeed be distinguished and to discuss their different roles and pay-offs in the labour market.We will show that, firstly, the level of field-specific skills obtained in higher education offers graduates a comparative advantage when working inside the own field-specific domain and therefore has a pay-off for those graduates who are able to find a job in their own field-specific domain; secondly, that management skills are valued in the labour market but seem to be more effectively acquired in a working context than in higher education and thirdly, that general academic competences acquired in higher education do not pay off directly but have a significant supportive role when learning skills that have a direct pay-off in the labour market but are more effectively acquired outside education.

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Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 001.

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Date of creation: 2003
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Handle: RePEc:dgr:umaror:2003001

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Keywords: labour market entry and occupational careers;

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References listed on IDEAS
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.:
  1. McIntosh, Steven & Vignoles, Anna, 2001. "Measuring and Assessing the Impact of Basic Skills on Labour Market Outcomes," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 453-81, July.
    Other versions:
  2. Green, Francis & Ashton, David & Felstead, Alan, 2001. "Estimating the Determinants of Supply of Computing, Problem-Solving, Communication, Social, and Teamworking Skills," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 406-33, July.
  3. Mane, Ferran, 1999. "Trends in the payoff to academic and occupation-specific skills: the short and medium run returns to academic and vocational high school courses for non-college-bound students," Economics of Education Review, Elsevier, vol. 18(4), pages 417-437, October. [Downloadable!] (restricted)
    Other versions:
  4. Bishop, J.H., 1995. "Vocational Education and At-Risk Youth in the United States," Papers 95-19, Cornell - Center for Advanced Human Resource Studies.
  5. Stasz, Cathleen, 2001. "Assessing Skills for Work: Two Perspectives," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 385-405, July.
  6. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb.. [Downloadable!] (restricted)
  7. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  8. Kang, Suk & Bishop, John, 1989. "Vocational and academic education in high school: Complements or substitutes?," Economics of Education Review, Elsevier, vol. 8(2), pages 133-148, April. [Downloadable!] (restricted)
  9. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
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  11. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April. [Downloadable!] (restricted)
  12. Bartel, Ann P & Sicherman, Nachum, 1998. "Technological Change and the Skill Acquisition of Young Workers," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 718-55, October. [Downloadable!] (restricted)
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  13. Brunello, Giorgio & Comi, Simona & Lucifora, Claudio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June. [Downloadable!] (restricted)
  15. Johnson, William R, 1979. "The Demand for General and Specific Education with Occupational Mobility," Review of Economic Studies, Blackwell Publishing, vol. 46(4), pages 695-705, October. [Downloadable!] (restricted)
  16. Ken Ducatel, 1998. "Learning and Skills in the Knowledge Economy," DRUID Working Papers 98-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  17. Francis Green, 1998. "The Value of Skills," Studies in Economics 9819, Department of Economics, University of Kent. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Fatima Suleman & Jean-Jacques Paul, 2008. "Diversity of human capital attributes and diversity of remunerating systems," Post-Print halshs-00260115_v1, HAL. [Downloadable!]
  2. Heijke Hans & Meng Christoph, 2007. "Discipline-specific and academic competencies of the higher educated: their value in the labour market and their acquisition in education," Working Papers 001, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
  3. Fatima Suleman & Jean-Jacques Paul, 2007. "Diversity of human capital attributes and diversity of remunerations," Post-Print halshs-00181402_v1, HAL. [Downloadable!]
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