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: Schooling, an observable signal, decreases its impact on wages as employers “publicly” learn workers’ hidden types over workers’ experience in the market. This symmetric employer learning hypothesis has been empirically contested by, first, asymmetry of incumbent and entrant employers, and second, larger-than-imagined complementarity between schooling and work experience, which could enshroud learning effect. Microanalysis of Japanese steel industry shows, 1) experience before entering the long-term employment is complementary to schooling, 2) employer learning effect dominates the complementarity effect after workers’ joining the long-term employment. It suggests that reported evidences of employer learning have in fact captured 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, Revised 2011-05-06
New Economics Papers: this item is included in nep-cis, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/30920/2/MPRA_paper_30920.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/33162/1/MPRA_paper_33162.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/36842/1/MPRA_paper_36842.pdf revised version (application/pdf)

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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