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Social Labor vs Human Capital: Competing Theories of Skills

Author

Listed:
  • Kyle Glenn

    (Department of Economics, Adams State University)

Abstract

Wage theory has long relied upon Human Capital theory as an explanation of skilled wages with labor economists attempting to find the appropriate specification for the return to education. Shaikh and Glenn (2018) construct an alternative model of skilled wages called the Social Labor hypothesis. Instead of returns to education, the Social Labor hypothesis posits wages as a function of social costs of education. This paper tests the empirical validity of the Social Labor hypothesis comparing it against the Human Capital model, finding a remarkable fit to empirical data. The paper also provides a theoretical approach to, and empirical evidence of, labor market discrimination.

Suggested Citation

  • Kyle Glenn, 2021. "Social Labor vs Human Capital: Competing Theories of Skills," Working Papers 2115, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:2115
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Skills; wage differentials; classical theory; human capital theory;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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