Value of human capital in transition to market: Evidence from Slovenia

Abstract

The paper summarizes existing hard evidence concerning the changing value of human capital in Slovenia's transition to a market system. It investigates changes in patterns of job mobility (via estimating multinomial logit and hazard models) and changes in the structure of wages (via earnings functions) associated with education, experience, gender, and ethnicity. Data are drawn from unusually rich administrative data sets that include personal characteristics, work history and earnings for virtually all labor force participants. All evidence points to rapidly increasing marginal returns to human capital in transition economies.