The Study of Wage Determinants Based on Human Capital Theory: Taking Management/Commerce-College Graduates as the Core
Date Issued
2006
Date
2006
Author(s)
Chou, Shih-Pei
DOI
en-US
Abstract
Human capital investment theory plays a momentous role in personal wage determination. According to Mincer’s eminent model (1968), schooling and work experience are two main essentials of wage determination. Although Mincer’s model is generally applied, it is rare to be used in a specific group.
In this study, we first focus on people graduated from four particular colleges, i.e., management/commerce, literature, law, and education colleges. We establish an extended model to test the relationship between wage and a worker’s schooling, work experience, gender, marriage, work place, firm-size and college. Second, because industrial and occupational categorizations are too broad within the four colleges, we use the sample of management/commerce college graduates employed in certain industries and occupations as the second data subset to do further analyses, including the analysis of gender wage discrimination.
In the first data subset, in addition to schooling and work experience, we also find other wage determinants such as marriage, firm-size, work place, householder, gender, and college. We demonstrate that married males earn wage premiums, and people graduated from management/commerce college significantly earn less than those from law college, but it is not evident that whether they earn more than literature and education college graduates.
In the second data subset, the adjusted R2 of the regression is larger than that in the first data subset due to the addition of other explanatory variables. Besides the variables in the first data subset, industrial and occupational variables also significantly affect wage determination. The results also show that a person can develop her/his professional skills by obtaining some certifications; then s/he can increase her/his human capital and thus earn higher wages in a professional domain. As for gender wage discrimination, there is no evidence that it has lessened after the enactment of Gender Equality in Employment Act. By using the decomposing method, 73.89% of gross gender wage differentials come from the endowment differences, and 26.11% are attributed to gender discrimination. We find that education has a counteracted effect on gender wage discrimination. It seems that obtaining more education for females is an effective way to avoid gender wage discrimination.
Subjects
人力資本
薪資決定
性別薪資歧視
human capital
wage determination
gender wage discrimination
SDGs
Type
other
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