Wages, Hours and Human Capital over the Live Cycle
AbstractWe investigate wage-hours contracts within a four-period rent sharing model that incorporates asymmetric information. Distinctions are made among (a) an investment period, (b) a period in which the parties may separate (quits or layoffs) or continue rent accumulation and sharing, (c) a post investment period and, (d) retirement. We establish that increases in both wage rates and hours of work in the post-investment period serve to minimise sub-optimal separations and, moreover that both wage and hours schedules are concave. The model is tested with the British Household Panel Survey (1991-1997) and with the British Labour Force Survey (1993/4).
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 139.
Length: 45 pages
Date of creation: Mar 2000
Date of revision:
Publication status: published in: Jahrbücher für Nationalökonomie und Statistik, 2008, 228 (5-6), 446-464, (Special Issue: Labormetrics)
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Other versions of this item:
- Robert A. Hart & Yue Ma, 2008. "Wages, Hours and Human Capital Over the Life Cycle," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 446-464, December.
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-05-30 (All new papers)
- NEP-EDU-2000-05-22 (Education)
- NEP-LAB-2000-05-30 (Labour Economics)
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