Gu, Ran (2023) Human Capital and the Business Cycle Effects on the Postgraduate Wage Premium. Review of Economic Dynamics, 48. pp. 345-376. DOI https://doi.org/10.1016/j.red.2022.07.001
Gu, Ran (2023) Human Capital and the Business Cycle Effects on the Postgraduate Wage Premium. Review of Economic Dynamics, 48. pp. 345-376. DOI https://doi.org/10.1016/j.red.2022.07.001
Gu, Ran (2023) Human Capital and the Business Cycle Effects on the Postgraduate Wage Premium. Review of Economic Dynamics, 48. pp. 345-376. DOI https://doi.org/10.1016/j.red.2022.07.001
Abstract
Postgraduate degree holders experience lower cyclical variation in real wages than those with undergraduate degrees. Moreover, postgraduate jobs require more spe- cific human capital. Using an equilibrium search model with dynamic incentive contracts, this paper attributes the cyclicality of the postgraduate-undergraduate wage gap to the differences in specific capital. Greater specific capital leads to lower mobility, thereby improving risk-sharing between workers and firms. The estimates of the model reveal that specific capital can explain the differences both in labour turnover and in real wage cyclicality between education groups.
Item Type: | Article |
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Uncontrolled Keywords: | real wage cyclicality; education; wage premium; specific human capital; wage contract; search |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 11 Feb 2022 20:43 |
Last Modified: | 16 May 2024 21:09 |
URI: | http://repository.essex.ac.uk/id/eprint/32163 |
Available files
Filename: ran_paper.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0