Stuck for Life: A Firm-Specific Human Capital Explanation of the Male Marraige Premium
نویسنده
چکیده
I argue that household specialization and investment in firm-specific human capital explain the male marriage premium. First I develop a model of human capital in which to-be-married men invest in human capital over two rounds. The promise of high returns to the second round of investment encourages firms to offer high wages before the first round, so that wages do not change upon marriage. The model has two other predictions, that among the self-employed wages should increase upon marriage, and that the cross-secional marriage premium should have declined over time. Using the Panel Study on Income Dynamics and the 2000 US Census, I find evidence in support of each of these predictions. Evidence from the self-employed suggests that marriage increases productivity by 20%, via the increased accumulation of human capital.
منابع مشابه
Perceived Firm-Specific Human Capital and Turnover: Stuck in their Heads?
Drawing on human capital theory, strategy scholars have emphasized firm-specific human capital as a source of sustained competitive advantage. In addition to its role in value creation, FSHC is thought to limit rival imitation and rent appropriation by hindering worker mobility. In this study, we explore micro-foundations of firm-specific human capital by theoretically and empirically examining...
متن کاملAn Economic Explanation of the Effect of Birth Order on Educational Achievement
T he relationship between birth order and child's human capital is studied in this paper. A Microeconomic model is designed to analyze the intrahousehold behavior on resource allocation and its outcomes for children. Since adding up a child changes the method of intrahousehold resource allocation, the expenditures of investment in child's human capital has been changed too. The aim o...
متن کاملGlobalisation and Labour Markets Research Paper 2002 / 15 Why do foreign - owned firms pay more ? The role of on - the - job training
Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue still remains unresolved. In a multi-period bargaining framework we show that if firm specific training i...
متن کاملWhy Do Foreign-Owned Firms Pay More? The Role of On-the-Job Training
Why Do Foreign-Owned Firms Pay More? The Role of On-the-Job Training Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue still remains unresolved. In a multi...
متن کاملThe Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)
According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets and the optimal use of assets can considerably enhance the capital productivity. In the current study, the relationship between the stages of firm life cycle and capital producti...
متن کامل