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- Title
Occupational earnings, compensating differentials, and human capital: an empirical study.
- Authors
Kumar, Pradeep; Coates, Mary Lou
- Abstract
This paper examines the empirical significance of the principle of compensating differentials for the occupational distribution of earnings in Canada. The estimated earnings equation relates differentials in earnings to differences in human capital investments of workers, training requirements, and other non-pecuniary characteristics of occupational employments. The evidence suggests that wage differentials are primarily 'equalizing differentials': workers receive higher pay in compensation for their higher schooling and work experience and for undertaking jobs that are risky, insecure, and require higher levels of general educational development and specific vocational preparation. The evidence also confirms the findings of hedonic wage equations that returns to schooling and experience may be biased when occupational requirements are not controlled.
- Subjects
CANADA; WAGES; INCOME inequality; HUMAN capital; WAGE differentials; ECONOMICS
- Publication
Canadian Journal of Economics, 1982, Vol 15, Issue 3, p442
- ISSN
0008-4085
- Publication type
Article
- DOI
10.2307/134760