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Title: The Trade-Off Between Wages and Wage Growth
Resulting in 1 citation.
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Garen, John Edward |
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The Trade-Off Between Wages and Wage Growth Journal of Human Resources 20,4 (Fall 1985): 522-539. Also: http://www.jstor.org/stable/145682 Cohort(s): Young Men Publisher: University of Wisconsin Press Keyword(s): Earnings; Educational Returns; Wage Growth This paper tests the theory of compensating differentials by estimating the sacrifice in current earnings necessary to acquire employment leading to future wage growth. Utilizing longitudinal data from the Young Men cohort, the predicted value of each individual's actual wage growth subsequent to the current period is related to the current wage. The results indicate a strong, inverse relationship between current earnings and the amount of future wage growth "purchased." The magnitude of this trade-off between current and future earnings varies with schooling, as does the total amount of current earnings capacity invested in wage growth. These findings are then compared to related results in the human capital production function literature. |
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Bibliography Citation
Garen, John Edward. "The Trade-Off Between Wages and Wage Growth." Journal of Human Resources 20,4 (Fall 1985): 522-539.
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