Changes in the structure of wages: The United States vs Japan

Katz, Lawrence F.; Revenga, Ana

doi:10.1016/0889-1583(89)90016-6

Cited by 116 publications

(46 citation statements)

References 4 publications

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“…The finding of a relatively small earnings differentials by occupation and education confirms the previous results obtained in studies based on a narrower period and using the BSWS data which only covers salaried workers outside small firms (Koike 1988, Katz & Revenga 1989. In particular Koike (1988) also documents that wage differentials by occupation and educational groups are narrower in Japan than in EC countries and the US.…”

Section: Datasupporting

confidence: 81%

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Father's income is predicted on the basis of a rich set of variables including education, occupation and job characteristics and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children and perform some robustness analysis with respect to the first-step specification and to the age selection rule for children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. Lastly, we estimate the intergenerational correlation of earnings. JEL Classification:D1, D3, J3

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Section: Datasupporting

confidence: 81%

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

2013

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“…! Blackburn, Bloom, and Freeman (1990/91) show that wage differences associated with education also increased for white females, while Katz and Revenga (1989) also point to Increases in the 1980s in wage differences associated with the level of labor market experience of white males.…”

Section: Introductionmentioning

confidence: 99%

Omitted-Ability Bias and the Increase in the Return to Schooling

Blackburn

Neumark

1993

Journal of Labor Economics

176

103

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Over the 1980s, there were sharp increases in the return to schooling estimated with conventional wage regressions. We explore whether the relationship between ability and schooling changed over this period in ways that would have increased the schooling coefficient in these regressions. Our empirical results reject the hypothesis that an increase in the bias of the schooling coefficient, due to a change in the relatIOnship between ability and schoolmg, has contributed to observed increases in the return to schooling. We also find that the increase in the schoolmg return has occurred for workers with relatively high levels of academic ability.

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“…As the most of a cohort came to enrol high school by the end of the 1970s, and the educational wage differential became an issue between college graduates and high school graduates. In the 1980s, while wage differential between college and high school graduates rose astonishingly in the US, the rise in Japan was relatively modest (Katz and Revenga (1989), It indicates that, responding to increased supply of higher-educated workforce, technologyskill/education complementarity was augmented along with manualization of production line, and the transition rather increased demand for more educated workers and pulled up return on education, 68 as happened in the US from the 1920s to the 1940s. 69 Also, massive ivestment in public education by the government apparently succeeded in release of the society from the "low skill trap" equilibrium.…”

mentioning

confidence: 94%

Schooling, Employer Learning, and Internal Labor Market Effect: Wage Dynamics and Human Capital Investment in the Japanese Steel Industry, 1930-1960s

Nakabayashi

2012

SSRN Journal

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Employer learning model predicts the impact of schooling, an observable signal, on wages decreases with accumulation of experience. Workers, however, have incentives to invest in general human capital both at schools and workplaces such that experience and schooling are complements unless the current employer commits to long-term employment. Microanalysis of Japanese steel industry indeed shows that experience before employed by the firm is complementary to schooling and the complementarity effect dominates employer learning effect while wage growth after employed is consistent with learning hypothesis. It suggests that previous evidences of employer learning might contain internal labor market effect.

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Changes in the structure of wages: The United States vs Japan

Cited by 116 publications

References 4 publications

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Omitted-Ability Bias and the Increase in the Return to Schooling

Schooling, Employer Learning, and Internal Labor Market Effect: Wage Dynamics and Human Capital Investment in the Japanese Steel Industry, 1930-1960s

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