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Wage Determination in Social Occupations: The Role of Individual Social Capital☆

In: Transitions through the Labor Market

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  • Julie L. Hotchkiss
  • Anil Rupasingha

Abstract

The purpose of this chapter is to assess the importance of individual social capital characteristics in determining wages, both directly through their valuation by employers and indirectly through their impact on individual occupational choice. We find that a person’s level of sociability and care for others works through both channels to explain wage differences between social and nonsocial occupations. Additionally, expected wages in each occupation type are found to be at least as important as a person’s level of social capital in choosing a social occupation. We make use of restricted 2000 Decennial Census and 2000 Social Capital Community Benchmark Survey.

Suggested Citation

  • Julie L. Hotchkiss & Anil Rupasingha, 2018. "Wage Determination in Social Occupations: The Role of Individual Social Capital☆," Research in Labor Economics, in: Transitions through the Labor Market, volume 46, pages 127-181, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-912120180000046005
    DOI: 10.1108/S0147-912120180000046005
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    More about this item

    Keywords

    Social capital; wage differentials; occupational choice; switching regression; nonpublic data; factor analysis; J31; Wage Differentials; J24; Occupational Choice; C34; Switching Regression Models;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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