Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s

Nakabayashi, Masaki (2011): Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s.

Abstract

The impact of schooling, an observable signal, on wages decreases as the employers “publicly” learn about the workers’ ability from their experience. This symmetric employer learning hypothesis is empirically questioned by, first, the asymmetry in learning of the current and the potential employers, and second, the complementarity between schooling and work experience that could enshroud learning effect. A microanalysis of the Japanese steel industry shows that, (1) experience before entering into long-term employment is complementary to schooling, and (2) the employer learning effect dominates the complementarity effect after entering into long-term employment; the internal labor market facilitates the employer learning.

• Item Type: MPRA Paper
• Language: English
• Keywords: employer learning, schooling and wages, internal labor market effect
• Subjects: N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N35 - Asia including Middle East; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

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