Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s

Masaki Nakabayashi

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: employer learning; schooling and wages; internal labor market effect (search for similar items in EconPapers)
JEL-codes: J24 J31 N35 (search for similar items in EconPapers)
Date: 2011-04-29
New Economics Papers: this item is included in nep-hrm and nep-lab
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Related works:
Working Paper: Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s (2011)
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