Skills and Earnings Revisited

Johnes, Geraint

doi:10.2139/ssrn.831724

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Skills and Earnings Revisited

14 Pages Posted: 2 Nov 2005

See all articles by Geraint Johnes

Geraint Johnes

Lancaster University - Lancaster University Management School; Lancaster University

Date Written: October 2005

Abstract

Regression and neural network models of wage determination are constructed where the explanatory variables include detailed information about skills. People skills, strategic skills, and IT skills all carry strong and significant wage premia; problem-solving skills (surprisingly) and physical skills (less surprisingly) do not. In contrast to the impact of school curriculum on subsequent earnings, the neural network modelling procedure does not pick up any significant nonlinearities in the relationship between skills and earnings.

Keywords: skills, earnings, neural networks

JEL Classification: I21, J24, J31, C45

Suggested Citation: Suggested Citation

Johnes, Geraint, Skills and Earnings Revisited (October 2005). Available at SSRN: https://ssrn.com/abstract=831724 or http://dx.doi.org/10.2139/ssrn.831724