Men at Work in a Land Down-Under: Testing Some Predictions of Human Capital Theory

24 Pages Posted: 24 Jan 2011

See all articles by Alison L. Booth

Alison L. Booth

Australian National University (ANU) - Research School of Social Sciences (RSSS); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Pamela Katic

Australian National University (ANU)

Date Written: January 13, 2011

Abstract

We use new training data from wave 36 of the Household, Income and Labour Dynamics in Australia Survey to investigate training and wages of full-time men. We explore the extent to which the data are consistent with the predictions of human capital theory or with recent alternative theories based on imperfectly competitive labour markets. According to the raw data, most work-related training received by full-time private-sector men is general, but it is also paid for by employers. Our fixed effects estimates reveal that this training is associated with higher wages in current and in future firms, and that the effect in future firms is larger and more precisely determined. These results are more consistent with the predictions of human capital theory based on imperfectly competitive labour markets than with the alternative of perfect competition.

Suggested Citation

Booth, Alison L. and Katic, Pamela, Men at Work in a Land Down-Under: Testing Some Predictions of Human Capital Theory (January 13, 2011). British Journal of Industrial Relations, Vol. 49, No. 1, pp. 1-24, 2011, Available at SSRN: https://ssrn.com/abstract=1745766 or http://dx.doi.org/10.1111/j.1467-8543.2009.00766.x

Alison L. Booth (Contact Author)

Australian National University (ANU) - Research School of Social Sciences (RSSS) ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 3285 (Phone)
+61 2 6125 0182 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Pamela Katic

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

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