Earnings functions. Testing for the demand side

Joop Hartog

doi:10.1016/0165-1765(85)90037-0

Earnings functions. Testing for the demand side

Joop Hartog^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

26 Citations (Scopus)

Abstract

To analyze labor market phenomena, one may simultaneously grade workers (by education) and jobs (by level of difficulty and complexity). Human capital theory predicts earnings based on only worker quality. Thurow's version of a segmented labor market theory predicts that only the job level is relevant, and the assignment theory predicts that both variables are relevant. Using three different data sets for The Netherlands, testing demonstrates convincingly the superiority of the assignment theory.

Original language	English
Pages (from-to)	281-285
Number of pages	5
Journal	Economics Letters
Volume	19
Issue number	3
DOIs	https://doi.org/10.1016/0165-1765(85)90037-0
Publication status	Published - 1985
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

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10.1016/0165-1765(85)90037-0

Cite this

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abstract = "To analyze labor market phenomena, one may simultaneously grade workers (by education) and jobs (by level of difficulty and complexity). Human capital theory predicts earnings based on only worker quality. Thurow's version of a segmented labor market theory predicts that only the job level is relevant, and the assignment theory predicts that both variables are relevant. Using three different data sets for The Netherlands, testing demonstrates convincingly the superiority of the assignment theory.",

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AB - To analyze labor market phenomena, one may simultaneously grade workers (by education) and jobs (by level of difficulty and complexity). Human capital theory predicts earnings based on only worker quality. Thurow's version of a segmented labor market theory predicts that only the job level is relevant, and the assignment theory predicts that both variables are relevant. Using three different data sets for The Netherlands, testing demonstrates convincingly the superiority of the assignment theory.

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DO - 10.1016/0165-1765(85)90037-0

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Earnings functions. Testing for the demand side

Abstract

UN SDGs

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