Inter-industry Wage Differential and Specific Human Capital

Download or read book Inter-industry Wage Differential and Specific Human Capital written by K. K. Tang and published by . This book was released on 2001 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: A dynamic general equilibrium model with industry-specific human capital is developed to account for inter-industry wage differential and imperfect labor mobility. It is demonstrated that more human capital intensive industries are more likely to pay higher wages, conditional on inter-industry differences in human capital depreciation rate and learning cost. In the light of internationally transferable technology, the model can also account for two empirical regularities, namely, cross-occupation and cross-country correlation of inter-industry wage differential.