Capabilities, allocation, and earnings
The basic message of this book is that the labor market can be usefully interpreted as a confrontation of workers who have heterogeneous capabilities and tastes with jobs that are heterogeneous in the potential productivity of given individual capability endowments. On the demand side the model is used to analyze division of labor, while on the supply side it is used to study schooling decisions and the effects of schools on the resulting structure of the labor force. Equilibrium is characterized and some optimimum properties are studied before the empirical work is presented. The empirical work consists of models for the allocation of individuals to jobs and of earnings functions. The relation between the two is studied and some underlying characteristics of the functioning of labor markets are demonstrated.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
ability activity analysis assumed BRABANT DATA capability endowment Chapter coefficients company training comparative advantage cost demand side depend derived dividuals dummy Dutch earnings function empirical Envelope Theorem equal equation equilibrium estimated evaluation family background father's occupation females firm firm's Hartog hedonic Hence higher job levels Horizontal Sorting implies indicates indifference curves individual's individuals to jobs intermediate job characteristics job level distribution job requirements job structure joint constraints labor market level of education logit model males marginal cost marginal rate marginal utility match measured missing observations multinomial logit non-response optimal optimum output frontier overqualification parameters perfect competition predicted job levels present price equation production function rate of substitution ratio reference relation relative relevant required capability levels required levels sample scholastic achievement scholastic test score schooling significant effect specialization specification Table tion type of education vector Vertical Sorting wage function wage slope workers