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Title: Interindustry Variation in Wages and Turnover
Resulting in 1 citation.
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Neal, Derek A. |
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Interindustry Variation in Wages and Turnover Ph.D. Dissertation, University of Virginia, 1992 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Industrial Training; Mobility; Skilled Workers; Skills; Transfers, Skill; Wage Models In the 1960's, human capital theorists explained inter-industry variation in wages and turnover by arguing that firms in high-wage industries invest heavily in firm-specific training. However, recent papers by efficiency wage theorists offer a different interpretation. Efficiency wage models illustrate circumstances that might induce firms to ration jobs and provide wage rents for their workers. Therefore, advocates of efficiency wage models view the negative correlation between wages and turnover across industries as evidence of job rationing in high-wage industries. This thesis develops a model of training choice that offers an alternative explanation for the negative correlation between wages and turnover across industries. The insight of the model is that, among trained workers who switch industries, the most able workers must forfeit compensation for the largest stocks of industry-specific skills. Since costs of industry switching rise with worker ability, the probability of industry switching declines with ability. |
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Bibliography Citation
Neal, Derek A. Interindustry Variation in Wages and Turnover. Ph.D. Dissertation, University of Virginia, 1992. |