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Title: The Determinants of Earnings: A Behavioral Approach
Resulting in 1 citation.
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Bowles, Samuel Gintis, Herbert Osborne, Melissa Anne |
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The Determinants of Earnings: A Behavioral Approach Journal of Economic Literature 39,4 (December 2001): 1137-1176. Also: http://www.jstor.org/stable/2698522 Cohort(s): NLSY79, Older Men, Young Women Publisher: American Economic Association Keyword(s): Behavior; Earnings; Human Capital; Skills Permission to reprint the abstract has not been received from the publisher. Enhancing individuals' capacity to succeed in the labor market is a major objective of both families and policy makers, one which in recent years has assumed special urgency with respect to those with low earnings. According to the canonical model, earnings are determined by human capital, which consists of capacities to contribute to production, generically called skills. Individuals possess a vector of these capabilities, "c," and sell these on the labor market at hourly prices "p," with hourly earnings "w = pc." But we know surprisingly little about what skills make up the vector of individual capabilities contributing to higher earnings, and as we will see, some common beliefs about the earnings-generation process receive little support from available data. However, recent developments in labor econometrics and the microeconomics of labor markets provide the basis for a reconsideration of the determinants of individual earnings. We here survey what is known about the determinants of individual earnings and, drawing on a number of recent contributions, propose a behavioral model that is capable of addressing the following puzzles in a parsimonious and non-ad hoc manner. |
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Bibliography Citation
Bowles, Samuel, Herbert Gintis and Melissa Anne Osborne. "The Determinants of Earnings: A Behavioral Approach." Journal of Economic Literature 39,4 (December 2001): 1137-1176.
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