Capabilities, Allocation and Earnings

1 Introduction.- 1.1 Introduction.- 1.2 Key concepts used.- 1.3 Organization of the book.- 2 Labor Demand.- 2.1 Introduction.- 2.2 The long run: designing the job structure.- 2.3 The ABC of labor division: Adam Smith, Charles Babbage and John Commons.- 2.4 Working conditions.- 2.5 Labor demand in the short run.- 2.6 Concluding remarks.- 3 Schooling and Supply.- 3.1 Introduction.- 3.2 Short run labor supply.- 3.3 Schooling in the smooth labor market.- 3.4 Schooling with constraints.- 3.5 Utility maximization.- 3.6 Conclusions.- 4 Equilibrium and Optimum.- 4.1 Introduction.- 4.2 The Lucas-Rosen model.- 4.3 The Tinbergen model.- 4.4 Comparative advantage.- 4.5 Optimal provision of job characteristics.- 4.6 Optimal schooling provisions.- 4.7 Conclusions.- Appendix 4.1.: Derivatives of the Tinbergen model.- 5 Implications for Empirical Work.- 5.1 Introduction.- 5.2 Implications and predictions.- 5.3 Econometric models of selfselection.- 5.4 Estimating structural models.- 5.5 The Datasets.- 5.6 Concluding remarks.- Appendix 5.1 The Brabant data.- Appendix 5.2 The ARBI job level scale.- Appendix 5.3 The CBS job level scale.- 6 Allocation.- 6.1 Introduction.- 6.2 Multinomial logit models for allocation.- 6.3 An ordered response model for allocation.- 6.4 Concluding remarks.- 7 Earnings.- 7.1 Introduction.- 7.2 Education and job level.- 7.3 Earnings functions by job level.- 7.4 Allocation and the nature of the earnings function.- 7.5 Overeducation and underutilization.- 7.6 Conclusions.- Appendix 7.1 Hay’s model.- 8 Applications, Conclusions, Extensions.- 8.1 Introduction.- 8.2 Young Mediterraneans in the Dutch labor market.- 8.3 Self-selection in educational choice.- 8.4 An overview of results.- 8.5 To be continued.- Appendix: Symbols Used.- Notes.- Name Index.