Micro foundations of earnings differences / Tirthatanmoy Das (Indian Institute of Management Bangalore and IZA), Solomon W. Polachek (State University of New York at Binghamton and IZA) ; IZA Institute of Labor Economics
VerfasserDas, Tirthatanmoy In der Gemeinsamen Normdatei der DNB nachschlagen ; Polachek, Solomon W. In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, July 2017
Elektronische Ressource
Umfang1 Online-Ressource (77 Seiten) : Diagramme
SerieDiscussion paper ; no. 10922
URNurn:nbn:de:hbz:5:2-135898 Persistent Identifier (URN)
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Micro foundations of earnings differences [1.19 mb]
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This paper examines how human capital based approaches explain the distribution of earnings. It assesses traditional, quasi-experimental, and new micro-based structural models, the latter of which gets at population heterogeneity by estimating individualspecific earnings function parameters. The paper finds ones ability to learn and ones ability to retain knowledge are most influential in explaining earnings variations. Marketable skills actually acquired in school depend on these two types of ability. However, schools may also implement ability enhancing interventions which can play a role in improving learning outcomes. Policy initiatives that improve these abilities would be a possible strategy to increase earnings and lower earnings disparity.