Decreasing wage returns to human capital: Analysis of wage and job experience using micro data of workers☆

Taro Kimura, Yoshiyuki Kurachi and Tomohiro Sugo

Journal of the Japanese and International Economies, 2022, vol. 66, issue C

Abstract: Recent literature reports a decrease in wage returns to skills since the 2000s. This paper contributes additional evidence that this trend is also occurring with skills that accumulate through job experience. We use micro data of Japanese workers to analyze this phenomenon by taking advantage of unique Japanese employment practices that emphasize skills acquired through tenure and on-the-job training as important human capital. We find that (1) wage returns to job experience have significantly decreased from the 2000s to the 2010s and (2) decomposing the human capital into general and firm-specific, the returns to the latter have decreased significantly.

Keywords: Wage returns; Skills; On-the-job training; General human capital; Firm-specific human capital (search for similar items in EconPapers)
JEL-codes: J20 J24 J26 J30 O33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:66:y:2022:i:c:s0889158322000260

DOI: 10.1016/j.jjie.2022.101217

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