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Author: Taubman, Paul
Resulting in 2 citations.
1. Neumark, David B.
Taubman, Paul
Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model
NBER Working Paper No. 4688, National Bureau of Economic Research, March 1994.
Also: http://nber.nber.org/papers/W4688
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Human Capital Theory; Wage Growth; Wage Levels; Wage Theory; Work Experience

This paper presents tests of the Lazear contract, human capital, and forced-saving explanations of rising wage profiles. The human capital model of general investment implies that the ratio of the present value of the earnings stream of investors to that of non-investors equals one. In contrast, the Lazear model implies that the ratio of the present value of the earnings stream for those on rising profiles to those on flat profiles exceeds one, while the forced-saving model implies that this ratio is below one. One test exploits a weaker form of this implication, that those with higher rates of growth of wages, all else the same, have lower initial wages. The forced-saving hypothesis also predicts a negative correlation between wage levels and rates of growth, while the Lazear model could generate a positive correlation. The evidence points to a correlation that is either positive or zero, consistent with the Lazear model but neither the human capital nor the forced-saving model. A second test makes direct use of the implications for present values. Under a variety of assumptions regarding discount rates and wage equation specifications, the results provide no evidence consistent with the forced-saving hypothesis, unless discount rates are near zero. But the calculations are somewhat inconclusive regarding the human capital and Lazear hypotheses; each receives some support depending on the assumed discount rate and wage equation specification. Nonetheless, under a variety of assumptions this test provides evidence supporting the Lazear hypothesis.
Bibliography Citation
Neumark, David B. and Paul Taubman. "Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model." NBER Working Paper No. 4688, National Bureau of Economic Research, March 1994.
2. Sickles, Robin
Taubman, Paul
Who Uses Illegal Drugs
American Economic Review 81,2 (May 1991): 248-251.
Also: http://www.jstor.org/stable/2006863
Cohort(s): NLSY79
Publisher: American Economic Association
Keyword(s): Drug Use; Substance Use

Permission to reprint the abstract has not been received from the publisher.

This paper utilizes data from the 1984 and 1988 NLSY to estimate a model of the types of young people reporting use, in the past year, of various illegal substances such as marijuana or cocaine. Examined are such socio- demographic variables as age, race, sex, parents' education, yearly income, and religious affiliation.
Bibliography Citation
Sickles, Robin and Paul Taubman. "Who Uses Illegal Drugs." American Economic Review 81,2 (May 1991): 248-251.