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An investigation on the pay-off to generic competences for core employees in Catalan manufacturing firms

  • Mañé Vernet, Ferran
  • Miravet, Daniel
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    The aim of this paper is to measure the returns to human capital. We use a unique data set consisting of matched employer-employee information. Data on individuals' human capital include a set of 26 competences that capture the utilization of workers' skills in a very detailed way. Thus, we can expand the concept of human capital and discuss the type of skills that are more productive in the workplace and, hence, generate a higher payoff for the workers. The rich information on firm's and workplace characteristics allows us to introduce a broad range of controls and to improve previous research in this field. This paper gives evidence that the returns to generic competences differ depending on the position of the worker in the firm. Only numeracy skills are reward independent of the occupational status of the worker. The level of technology used by the firm in the production process does not directly increase workers’ pay, but it influences the pay-off to some of the competences. JEL Classification: J24, J31

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    Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/179595.

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    Date of creation: 2010
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    Handle: RePEc:urv:wpaper:2072/179595
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    1. repec:lan:wpaper:4510 is not listed on IDEAS
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    3. Heijke,Hans & Meng,Christoph & Ramaekers,Ger, 2003. "An investigation into the role of human capital competences and their pay-off," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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    13. Mizala, Alejandra & Romaguera, Pilar, 1998. "Wage Differentials and Occupational Wage Premia: Firm-Level Evidence for Brazil and Chile," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(2), pages 239-57, June.
    14. Erica L. Groshen, 1991. "Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 869-884.
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