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Source: Hitotsubashi Journal of Economics
Resulting in 2 citations.
1. Gan, Li
Shin, Jaeun
Li, Qi
Initial Wage, Human Capital and Post Wage Differentials
Hitotsubashi Journal of Economics 51 (December 2010): 79-97.
Also: http://hermes-ir.lib.hit-u.ac.jp/rs/handle/10086/18778
Cohort(s): NLSY79
Publisher: Hitotsubashi University
Keyword(s): Human Capital; Job Productivity; Wage Determination; Wage Dynamics; Wage Models

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

Insufficiency in information with which firms judge the productivity of a worker for the first time in the market creates more randomness in initial wages than in later wages. This paper examines whether the initial randomness in wages may have a persistent effect on post wages. We set up a human capital accumulation in which an individual may respond to the positive error in initial wage by adjusting hours worked thereafter in her career, and consequently may receive higher future wages than those who draw a negative error in initial wages but otherwise are equivalent. The model predicts that the initial wage, in particular, its random component, is a persistently important factor having positive effect on future wages. Using data from the National Longitudinal Survey of Youth 79, we find empirical evidence that this effect is indeed positive and persists even after 20 years since the initial entry to labor market. The decomposition of initial wages by both parametric and nonparametric IV methods further shows that this effect is derived by the random component, not the observable component, of the initial wage. It implies that the observed cross-sectional wage variation within group can be accounted for the initial randomness in wages.
Bibliography Citation
Gan, Li, Jaeun Shin and Qi Li. "Initial Wage, Human Capital and Post Wage Differentials." Hitotsubashi Journal of Economics 51 (December 2010): 79-97.
2. Kawaguchi, Daiji
Self-Employment Rents: Evidence from Job Satisfaction Scores
Hitotsubashi Journal of Economics 49,1 (June 2008): 35-45.
Also: http://hermes-ir.lib.hit-u.ac.jp/rs/handle/10086/15881
Cohort(s): NLSY79
Publisher: Hitotsubashi University
Keyword(s): Heterogeneity; Job Satisfaction; Self-Employed Workers; Self-Reporting; Wages

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

Previous studies have pointed to the existence of barriers at the entry of self-employed sectors, such as liquidity constraints. In many countries, policies are directed toward removing these barriers in order to promote entrepreneurial activity. This paper examines whether such barriers exist by examining the amount of rent enjoyed by self-employed workers; if there are no barriers between the self-employed sector and the salary/wage sector, self-employed workers should not enjoy rents. Examination of the rent associated with self-employment, however, cannot simply be accomplished by comparing the incomes of self-employed and salary/wage workers. This is because self-employed workers may enjoy higher utility due to their work environment, with such benefits as autonomy and flexibility of work schedules. To overcome the difficulty of measuring self-employment rents, I use self-reported job satisfaction from the National Longitudinal Survey of Youth 79 (NLSY79) to capture workers' overall satisfaction with their jobs. The results robustly indicate that self-employed workers are more satisfied with their jobs than salary/wage workers, even after allowing for the time-invariant individual heterogeneity in their reported job satisfaction. This result suggests that there are barriers at the entry into self-employment and that self-employed workers enjoy rents.
Bibliography Citation
Kawaguchi, Daiji. "Self-Employment Rents: Evidence from Job Satisfaction Scores." Hitotsubashi Journal of Economics 49,1 (June 2008): 35-45.