The Covariance Structure of Earnings and the On the Job Training Hypothesis / John C. Hause.

Author
Hause, John C. [Browse]
Format
Book
Language
English
Published/​Created
  • Cambridge, Mass. National Bureau of Economic Research 1973.
  • Cambridge, Mass. : National Bureau of Economic Research, 1973.
Description
1 online resource: illustrations (black and white);

Details

Subject(s)
Series
  • Working Paper Series (National Bureau of Economic Research) no. w0025. [More in this series]
  • NBER working paper series no. w0025
Summary note
The fine structure of earnings is defined by a theoretically meaningful decomposition of the covariance matrix of earnings (or log earnings) time series. A three-element variance components model is proposed for analyzing earnings of young workers. These components are interpreted as the effects of differential on-the-job training (OJT) and differential economic ability. Several properties of these components and relationships between them are deduced from the OJT model. Background noise generated by a nonstationary first-order autoregressive process, with heteroscedastic innovations and time-varying AR parameters is also assumed present in observed earnings. ML estimates are obtained for all parameters of the model for a sample of Swedish males. The results are consistent with the view that the OJT mechanism is an empirically significant phenomenon in determining individual earnings profiles.
Notes
December 1973.
Bibliographic references
Includes bibliographical references.
Source of description
Print version record
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