The Return to the Firm Investment in Human Capital In this paper we estimate the rate of return to firm investments in human capital in the form of formal job training. We use a panel of large firms with unusually detailed information on the duration of training, the direct costs of training, and several firm characteristics such as their output, workforce characteristics and capital stock. Our...

The literature relates human capital costs to firm leverage (Berk, Stanton, and Zechner (2010) and Chemmanur, Cheng, and Zhang (2013)) and mergers and acquisitions (Lee, Mauer, and Xu (2017)). In this paper, we study the relation between a firm’s human capital costs and investment policy. We first present a simple theoretical setting to illustrate the positive effects of risky investment on ave...

in this paper, i investigated the determinants of financial development with emphasis on social capital. first, i explain the relationship between financial development and its determinants, then estimate the model with gregory–hansen (1996) and johansen-juselious cointegration techniques in i.r. of iran (1971-2006). the results showed that, inflation and decline in social capital and weak prop...

We propose an extended PAYG social security system that conditions pension benefits on the aggregate wage sum and on the wage of one’s children. The latter increases parents’ incentives to provide their children with good within-family education. However, since wages depend stochastically on parents’ unobservable investment in their children’s human capital, some insurance against the productiv...

The Sexual Orientation Wage Gap: The Role of Occupational Sorting, Human Capital, and Discrimination Using data from the 2000 U.S. Census, we document and explore three alternative explanations for the sexual orientation wage gap: occupational sorting, human capital differences, and discrimination. We find lesbian women earn more than their heterosexual counterparts irrespective of marital stat...

I study the implications of various bankruptcy regimes for student loans on college investment, human capital accumulation, and earnings in a heterogeneous life-cycle economy with risky human capital investment. The option to discharge one’s debt under a liquidation regime helps alleviate some of the risk of investing in human capital. However, dischargeability triggers exclusion from borrowing...

The labour productivity differentials between manufacturing firms in Ghana and South Korea exceed those implied by macro analysis. Median value-added per employee is nearly 40 times higher in South Korea than Ghana. The most important single factor in explaining this difference is the Mincerian return to skills which differ by a factor of three between Ghana and South Korea. There is no signifi...

Family Bargaining and Taxes: A Prolegomenon to the Analysis of Joint Taxation Does joint taxation disadvantage women? To answer that question, this paper begins by reviewing unitary and bargaining models of intrafamily allocation, and then discusses the determinants of "bargaining power" in a world without taxes. It argues that wage rates rather than earnings are determinants of bargaining powe...

Social Security Incentives, Human Capital Investment and Mobility of Labor Migration between countries with earnings-related and flat-rate pay-as-you-go social security systems may change human capital investments in both countries. The possibility of emigration boosts investments in human capital in the country with flat-rate benefits. Correspondingly, those expecting to migrate from the count...

This paper employs Roback’s locational-equilibrium model of public-goods pricing, crosssectional data from the Census of Population and Housing, and SMSA-level estimates of public capital stocks in order to examine the productive contribution of public capital. I find that public capital has a small positive impact on private output. JEL classification codes: E62, R53