Inter-Industry Wage Differential and Specific Human Capital

Tang, Kam Ki and Tseng, Yi-Ping (2001) Inter-Industry Wage Differential and Specific Human Capital. Discussion Paper No. 287, School of Economics, The University of Queensland.

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Author Tang, Kam Ki
Tseng, Yi-Ping
Title Inter-Industry Wage Differential and Specific Human Capital
School, Department or Centre School of Economics
Institution The University of Queensland
Report Number Discussion Paper No. 287
Publication date 2001-04-01
Language eng
Subject 340207 Labour Economics
Abstract/Summary A dynamic general equilibrium model with industry-specific human capital is developed to account for inter-industry wage differential and imperfect labour mobility. It is demonstrated that more human capital-intensive industries are more likely to pay higher wages, conditional on inter-industry differences in human capital depreciation rate and learning cost. In the light of internationally transferable technology, the model can also account for two empirical regularities, namely cross-occupation and cross-country correlation of inter-industry wage differential.
Keyword human capital
wage differential
industry
dynamic general equilibrium
models

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
 
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