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Capabilities, Allocation and Earnings - Joop Hartog

Capabilities, Allocation and Earnings

Hardcover Published: December 2009
ISBN: 9780792391739
Number Of Pages: 324

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The basic message of this book is that the labor market can be usefully interpreted as a confrontation of workers who have heterogeneous capabilities and tastes with jobs that are heterogeneous in the potential productivity of given individual capability endowments. On the demand side the model is used to analyze division of labor, while on the supply side it is used to study schooling decisions and the effects of schools on the resulting structure of the labor force. Equilibrium is characterized and some optimimum properties are studied before the empirical work is presented. The empirical work consists of models for the allocation of individuals to jobs and of earnings functions. The relation between the two is studied and some underlying characteristics of the functioning of labor markets are demonstrated.

Introductionp. 1
Key concepts usedp. 3
Organization of the bookp. 10
Labor Demand
Introductionp. 13
The long run: designing the job structurep. 13
The ABC of labor division: Adam Smith, Charles Babbage and John Commonsp. 18
Introductionp. 18
Integration or specialization?p. 21
The effect of learning: increased dexterityp. 31
Implicationsp. 35
Working conditionsp. 37
Labor demand in the short runp. 41
Concluding remarksp. 44
Schooling and Supply
Introductionp. 47
Short run labor supplyp. 49
Schooling in the smooth labor marketp. 54
Schooling with constraintsp. 68
Capability rationingp. 72
Imperfect informationp. 77
Utility maximizationp. 81
Conclusionsp. 84
Equilibrium and Optimum
Introductionp. 91
The Lucas-Rosen modelp. 92
The Tinbergen modelp. 98
Comparative advantagep. 107
Optimal provision of job characteristicsp. 122
Optimal schooling provisionsp. 132
Conclusionsp. 136
Appendix 4.1.: Derivatives of the Tinbergen modelp. 139
Implications for Empirical Work
Introductionp. 141
Implications and predictionsp. 142
Econometric models of selfselectionp. 145
Estimating structural modelsp. 148
The Datasetsp. 152
Concluding remarksp. 157
Appendix: 5.1 The Brabant data
A5.1.1 Organizing the samplep. 158
A5.1.2 Description of Brabant variablesp. 160
A5.1.3 Analyzing non-responsep. 164
Appendix: 5.2 The ARBI job level scalep. 173
Appendix: 5.3 The CBS job level scalep. 175
Introductionp. 179
Multinomial logit models for allocationp. 181
The modelp. 181
The effect of childhood variablesp. 182
Schoolingp. 187
Childhood and education combinedp. 192
Some implicationsp. 196
An ordered response model for allocationp. 207
Concluding remarksp. 220
Introductionp. 223
Education and job levelp. 224
Earnings functions by job levelp. 231
Allocation and the nature of the earnings functionp. 243
Linking earnings with the ordered-response model for allocationp. 243
Simulating alternative allocationsp. 254
Overeducation and underutilizationp. 261
Conclusionsp. 268
Appendix 7.1 Hay's modelp. 269
Applications, Conclusions, Extensions
Introductionp. 277
Young Mediterraneans in the Dutch labor marketp. 277
Self-selection in educational choicep. 282
An overview of resultsp. 288
To be continuedp. 295
Appendix: Symbols Usedp. 299
Notesp. 303
Name Indexp. 319
Subject Indexp. 322
Table of Contents provided by Blackwell. All Rights Reserved.

ISBN: 9780792391739
ISBN-10: 079239173X
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 324
Published: December 2009
Publisher: Springer
Country of Publication: NL
Dimensions (cm): 23.5 x 15.5  x 2.0
Weight (kg): 1.44