Human Capital Returns Research Articles

Managerial Incentive Problems: A Dynamic Perspective

The paper studies how a person's concern for a future career may influence his or her incentives to put in effort or make decisions on the job. In the model, the person's productive abilities are revealed over time through observations of performance. There are no explicit output-contingent contracts, but since the wage in each period is based on expected output and expected output depends on assessed ability, an implicit links today's performance to future wages. An incentive problem arises from the person's ability and desire to influence the learning process, and therefore the wage process, by taking unobserved actions that affect today's performance. The fundamental incongruity in preferences is between the individual's concern for human capital returns and the firm's concern for financial returns. The two need be only weakly related. It is shown that career motives can be beneficial as well as detrimental, depending on how well the two kinds of capital returns are aligned. It is well understood by now that informational externalities may place special demands on the organization of economic exchange. Simple price-mediated markets will frequently fail in the presence of asymmetric information. In that case more elaborate contractual arrangements have to be used as substitutes for the price system. Lately, considerable effort has been devoted to the analysis of contracting under incomplete information with the objective to understand the range of economic institutions that emerge in response to the failure of the price system. The analysis of moral hazard has played a prominent role in this development.' Moral hazard problems arise when, for some reason or another, transacting parties cannot contract contingent on the delivery of the good. For instance, in buying labour services it may be that the amount of labour supplied is not directly observable, precluding a simple exchange of wage for labour. As a partial remedy to this problem, an imperfect, mutually observed signal about the supply of labour can be used as a proxy in the contract. Frequently, output is taken as such a proxy. The drawback is that output is often influenced by other factors than labour input, which induce undesirable risk into the contract. One is therefore faced with a tradeoff between allocating risk associated with incomplete observability and providing incentives for a proper supply of labour. Gaining insight into this tradeoff is important not only for understanding contracting in the small (e.g. managerial incentive schemes), but also because it is closely related to the fundamental tension between equity and efficiency in the society as a whole. While our understanding of moral hazard has advanced a lot in past years, it is clear that much work remains. An important question that has received little attention until

Human Capital, Entrepreneurship, and Farm Household Earnings

The allocation of resources between agriculture and non- agriculture is a central decision of a farm household. In this paper we formulate a profit-maximization model in which human capital enhances efficiency through both within-sector effects and across-sector allocation of quasi-fixed inputs. The model is estimated using Chinese household data that contain detailed activity information during a period of rapid growth in non-farm production. We find that schooling and experience improve the sectoral uses of household- supplied inputs, accounting for 49 percent of their total contribution to earnings. The evidence suggests that conventional estimates of human capital returns obtained within sectors would substantially undervalue the role of human capital in development.

Social Capital, Place of Residence, and College Attendance1

The relationship between social interaction and college attendance is examined across varying types of communities. Structural arrangements and interaction patterns that foster positive relationships are regarded as social capital and are conceptualized as investments that can yield human capital returns in terms of higher educational attainment. Logistic regression procedures are employed to analyze data from the High School and Beyond Longitudinal Study. The social capital model of college attendance is estimated for the full sample and separately for high school students living in urban, suburban, and rural communities. Predicted probabilities of attending college for students with high and low social capital are obtained. Results of these analyses indicate that parental expectation of college attendance is the most powerful predictor of subsequent college attendance among variables examined. Measures of community social capital and parental human capital also strongly predict attendance.

Union Effects on Human Capital Investments and Returns

Union Effects on Human Capital Investments and Returns

Self-employed workers: Returns to education and training

An empirical investigation of human capital returns to owners of unincorporated nonfarm businesses is described, and the results are compared with those for a similar cohort of employees. Data are from the older male cohort of the National Longitudinal Survey. A single-equation semi-log regression model is employed throughout. Results show that human capital returns to self-employed workers are basically consistent with results for employees, but some differences emerge. As hypothesized, returns to general training are somewhat larger and returns to specific training somewhat smaller for self-employed workers. The time path of returns associated with job tenure also differs.

Household Allocation of Time and Church Attendance: Some Additional Evidence

Previous articleNext article No AccessConfirmations and ContradictionsHousehold Allocation of Time and Church Attendance: Some Additional EvidenceStephen H. Long and Russell F. SettleStephen H. Long Search for more articles by this author and Russell F. Settle Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 85, Number 2Apr., 1977 Article DOIhttps://doi.org/10.1086/260572 Views: 11Total views on this site Citations: 25Citations are reported from Crossref Copyright 1977 The University of ChicagoPDF download Crossref reports the following articles citing this article:Ronald B. Larson , International Journal of Market Research 61, no.55 ( 2019): 534.https://doi.org/10.1177/1470785318805305Imam Alam, Shahina Amin, Ken McCormick Income, Education, and Three Dimensions of Religiosity in the USA, Eastern Economic Journal 44, no.44 (Sep 2017): 501–518.https://doi.org/10.1057/s41302-017-0101-6 References, (Jan 2018): 307–468.https://doi.org/10.1016/B978-0-12-805371-3.16001-7Michael A. Kortt, Todd Steen, Elisabeth Sinnewe Church attendance, faith and the allocation of time: evidence from Australia, International Journal of Social Economics 44, no.1212 (Dec 2017): 2112–2127.https://doi.org/10.1108/IJSE-05-2016-0140Madalena Abreu Nonprofit Marketing: A European Perspective on Donations and Religiousness, (Oct 2015): 347–356.https://doi.org/10.1007/978-3-319-24148-7_106Christofer Edling, Jens Rydgren, Love Bohman Faith or Social Foci? Happiness, Religion, and Social Networks in Sweden, European Sociological Review 30, no.55 (Aug 2014): 615–626.https://doi.org/10.1093/esr/jcu062Professor Masudul Alam Choudhury, Nicholas Tuszynski, Walter E. Block The principal – agent problem between the Pope and God: how the printing press saved the papacy, Humanomics 30, no.33 (Aug 2014): 275–284.https://doi.org/10.1108/H-07-2013-0044Dr. Annie Tubadji, Professor Joachim Mo, Maria J. Perez-Villadoniga, Juan Prieto-Rodriguez, Javier Suarez-Pandiello Willingness to work and religious beliefs in Europe, International Journal of Manpower 35, no.1/21/2 (May 2014): 147–165.https://doi.org/10.1108/IJM-03-2014-0068Pablo Brañas-Garza, Teresa García-Muñoz, Shoshana Neuman Intergenerational transmission of ‘religious capital’. Evidence from Spain, Revista Internacional de Sociología 69, no.33 (Jul 2011): 649–677.https://doi.org/10.3989/ris.2010.06.28Maryam Dilmaghani Religiosity, human capital return and earnings in Canada, International Journal of Social Economics 39, no.1/21/2 (Dec 2011): 55–80.https://doi.org/10.1108/03068291211188875Chun-Ping Chang, Chien-Chiang Lee, Jia-Hsi Weng Is the secularization hypothesis valid? A panel data assessment for Taiwan, Applied Economics 43, no.66 (Mar 2011): 729–745.https://doi.org/10.1080/00036840802599826Anca Cojoc After the fall: the impact of government regulation on church attendance in Eastern Europe, 1990–2004, Public Choice 142, no.3-43-4 (Oct 2009): 485–496.https://doi.org/10.1007/s11127-009-9541-9Timothy Tyler Brown Rational praying: The economics of prayer, The Journal of Socio-Economics 38, no.11 (Jan 2009): 37–44.https://doi.org/10.1016/j.socec.2008.07.006Johan Graafland, Corrie Mazereeuw-Van Der Duijn Schouten The Heavenly Calculus and Socially Responsible Business Conduct: An Explorative Study among Executives, De Economist 155, no.22 (Jun 2007): 161–181.https://doi.org/10.1007/s10645-007-9053-2Charles M. North, Carl R. Gwin Religious Freedom and the Unintended Consequences of State Religion, Southern Economic Journal 71, no.11 (Jul 2004): 103–117.https://doi.org/10.1002/j.2325-8012.2004.tb00626.xSuzanne Heller Clain, Charles E. Zech A Household Production Analysis Of Religious., American Journal of Economics and Sociology 58, no.44 (Oct 1999): 923–946.https://doi.org/10.1111/j.1536-7150.1999.tb03401.xSamuel Cameron Faith, frequency, and the allocation of time: a micro level study of religious capital and participation, The Journal of Socio-Economics 28, no.44 (Jan 1999): 439–456.https://doi.org/10.1016/S1053-5357(99)00047-5John W. Sawkins, Paul T. Seaman, Hector C. S. Williams Church attendance in Great Britain: An ordered logit approach, Applied Economics 29, no.22 (Oct 2010): 125–134.https://doi.org/10.1080/000368497327209Ian Smith The Economics of Church Decline in Scotland, International Journal of Social Economics 20, no.1212 (Dec 1993): 27–36.https://doi.org/10.1108/03068299310045776Brooks B. Hull, Frederick Bold Towards an Economic Theory of the Church, International Journal of Social Economics 16, no.77 (Jul 1989): 5–15.https://doi.org/10.1108/EUM0000000000444Shoshana Neuman Religious observance within a human capital framework: theory and application, Applied Economics 18, no.1111 (Jul 2006): 1193–1202.https://doi.org/10.1080/00036848600000072Amyra Grossbard-Shechtman, Shoshana Neuman Economic behavior, marriage and religiosity, Journal of Behavioral Economics 15, no.1-21-2 (Mar 1986): 71–85.https://doi.org/10.1016/0090-5720(86)90059-8Holley Ulbrich, Myles Wallace Church attendance, age, and belief in the afterlife: Some additional evidence, Atlantic Economic Journal 11, no.22 (Jul 1983): 44–51.https://doi.org/10.1007/BF02303367F. Reed Johnson The Mormon Church as a Central Command System, Review of Social Economy 37, no.11 (Apr 1979): 79–94.https://doi.org/10.1080/00346767900000006 Ronald G. Ehrenberg Household Allocation of Time and Religiosity: Replication and Extension, Journal of Political Economy 85, no.22 (Oct 2015): 415–423.https://doi.org/10.1086/260573

The Risk Element in Occupational and Educational Choices

The study contains estimates of the coefficients of variation of income of scientists by age, level of education, and type of employment. The source of data is the 1966 National Register of Scientific and Technical Personnel. The analysis shows that the coefficient of variation tends to decrease as the level of education increases, and to be higher in private industry than in government or educational institutions. Incomes of scientists are found to be lognormally distributed. Estimates of the rate of return to education, which take into account risk differentials, are derived.

Hours of Work in the United States: A Cross-Sectional Analysis

Previous articleNext article No AccessHours of Work in the United States: A Cross-Sectional AnalysisT. Aldrich FineganT. Aldrich Finegan Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 70, Number 5, Part 1Oct., 1962 Article DOIhttps://doi.org/10.1086/258698 Views: 13Total views on this site Citations: 22Citations are reported from Crossref Copyright 1962 The University of ChicagoPDF download Crossref reports the following articles citing this article:Florin Vadean, Teresa Randazzo, Matloob Piracha Remittances, Labour Supply and Activity of Household Members Left-Behind, The Journal of Development Studies 55, no.22 (Nov 2017): 278–293.https://doi.org/10.1080/00220388.2017.1404031 Alberto Alesina , Edward Glaeser , and Bruce Sacerdote Work and Leisure in the United States and Europe: Why So Different?, NBER Macroeconomics Annual 20 (Sep 2015): 1–64.https://doi.org/10.1086/ma.20.3585411Suzanne Model, Gretchen Stiers, Eleanor Weber Overtime and Undertime: An Analysis of Hours Worked, Sociological Inquiry 62, no.44 (Oct 1992): 413–436.https://doi.org/10.1111/j.1475-682X.1992.tb00292.x Tomio Kinoshita Working Hours and Hedonic Wages in the Market Equilibrium, Journal of Political Economy 95, no.66 (Oct 2015): 1262–1277.https://doi.org/10.1086/261514John Pencavel Chapter 1 Labor supply of men: A survey, (Jan 1986): 3–102.https://doi.org/10.1016/S1573-4463(86)01004-0J. L. Hersch Allocation of time and human energy and its effects on productivity, Applied Economics 17, no.55 (May 2006): 867–884.https://doi.org/10.1080/00036848500000041Benjamin Kline Hunnicutt The end of shorter hours, Labor History 25, no.33 (Jul 2008): 373–404.https://doi.org/10.1080/00236568408584762Don Fullerton On the possibility of an inverse relationship between tax rates and government revenues, Journal of Public Economics 19, no.11 (Oct 1982): 3–22.https://doi.org/10.1016/0047-2727(82)90049-4George Strauss, Peter Feuille Industrial Relations Research in the United States, (Jan 1981): 76–144.https://doi.org/10.1007/978-1-349-04442-9_3James D. Adams Daylight Savings: An endogenous law, Public Choice 36, no.22 (Jan 1981): 345–349.https://doi.org/10.1007/BF00123791 References, (Jan 1981): 175–186.https://doi.org/10.1016/B978-0-12-403920-9.50012-4 Albert Rees Douglas on Wages and the Supply of Labor, Journal of Political Economy 87, no.5, Part 15, Part 1 (Oct 2015): 915–922.https://doi.org/10.1086/260805Francis W. Ahking A Study of the Labor Force Participation Rate of Single Women, The American Economist 23, no.22 (Oct 1979): 50–55.https://doi.org/10.1177/056943457902300209K. E. Mcconnell Estimating and testing a complete system of demand functions from regional data, Applied Economics 10, no.22 (Nov 2006): 93–104.https://doi.org/10.1080/758525398James Clarke, Charles Zech An Empirical Estimation of Labor Supply in Response to Primary and Secondary Wages, The American Economist 22, no.11 (Mar 1978): 46–50.https://doi.org/10.1177/056943457802200110N.H. Stern On the specification of models of optimum income taxation, Journal of Public Economics 6, no.1-21-2 (Jul 1976): 123–162.https://doi.org/10.1016/0047-2727(76)90044-XJ. M. CAMPBELL, THOMAS D. CURTIS GRADUATE EDUCATION AND PRIVATE RATES OF RETURN: A REVIEW OF THEORY AND EMPIRICISM, Economic Inquiry 13, no.11 (Sep 2007): 99–118.https://doi.org/10.1111/j.1465-7295.1975.tb01106.xCHRISTIAN EHEMANN GENERAL DISEQUILIBRIUM, FISCAL POLICY, AND A WAGE-PRICE FREEZE, Economic Inquiry 12, no.11 (Mar 1974): 35–52.https://doi.org/10.1111/j.1465-7295.1974.tb00225.x Yoram Ben-Porath Labor-Force Participation Rates and the Supply of Labor, Journal of Political Economy 81, no.33 (Oct 2015): 697–704.https://doi.org/10.1086/260065 C. M. Lindsay Measuring Human Capital Returns, Journal of Political Economy 79, no.66 (Oct 2015): 1195–1215.https://doi.org/10.1086/259831 John D. Owen The Demand for Leisure, Journal of Political Economy 79, no.11 (Oct 2015): 56–76.https://doi.org/10.1086/259724 Robert E. Lucas, Jr. , and Leonard A. Rapping Real Wages, Employment, and Inflation, Journal of Political Economy 77, no.55 (Oct 2015): 721–754.https://doi.org/10.1086/259559