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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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    File URL: http://hdl.handle.net/2072/179595
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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
    Contact details of provider: Postal: Avda. de la Universitat,1 - 43204 Reus (Tarragona)
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    Fax: 977 75 98 10
    Web page: http://www.urv.cat
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    1. Simon, Hipolito, 2005. "Employer wage differentials from an international perspective," Economics Letters, Elsevier, vol. 88(2), pages 284-288, August.
    2. Steven McIntosh & Anna Vignoles, 2000. "Measuring and assessing the impact of basic skills on labour market outcomes," LSE Research Online Documents on Economics 19557, London School of Economics and Political Science, LSE Library.
    3. John H. Tyler & Richard J. Murnane & John B. Willett, 2000. "Do the Cognitive Skills of School Dropouts Matter in the Labor Market?," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 748-754.
    4. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
    5. Stewart, Mark B, 1982. "On Least Squares Estimation when the Dependent Variable is Grouped," The Warwick Economics Research Paper Series (TWERPS) 207, University of Warwick, Department of Economics.
    6. Andy Dickerson & Francis Green, 2004. "The growth and valuation of computing and other generic skills," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 371-406, July.
    7. Mane, F., 1998. "Trends in the Payoff to Academic and Occupation-Specific Skills: The Short and Midium Run Returns to Academic and Vocational High School Courses for Non-College Bound Students," Papers 98-07, Cornell - Center for Advanced Human Resource Studies.
    8. repec:lan:wpaper:4814 is not listed on IDEAS
    9. 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.
    10. 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).
    11. repec:lan:wpaper:4510 is not listed on IDEAS
    12. Kevin Denny & Colm Harmon & Vincent O'Sullivan, 2004. "Education, earnings and skills: a multi-country comparison," IFS Working Papers W04/08, Institute for Fiscal Studies.
    13. Alberto Dalmazzo & Tuomas Pekkarinen & Pasquale Scaramozzino, 2007. "O-ring Wage Inequality," Economica, London School of Economics and Political Science, vol. 74(295), pages 515-536, 08.
    14. Murnane, Richard J & Willett, John B & Levy, Frank, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 251-66, May.
    15. Fatima Suleman & Jean-Jacques Paul, 2007. "Diversity of human capital attributes and diversity of remunerations," Post-Print halshs-00181402, HAL.
    16. G Johnes, 2005. "Skills and earnings revisited," Working Papers 573993, Lancaster University Management School, Economics Department.
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