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Home Research areas Employment and pay Human capital, productivity and wages

Human capital, productivity and wages

Human capital is a life-long process and a key driver of family income and economic wellbeing. The employment and earnings trajectories that individuals face over their adult lives are intimately linked to the formation of skills during childhood and the continuing investment in skills later in life. But they also depend on labour market conditions and institutions. Our research in this area seeks to advance understanding of the process of human capital formation, how it relates to socio-economic background, its role in driving family income and economic inequality. We investigate the importance of family, education and labour market policies in promoting the accumulation of skills and mitigating the consequences of low skills and low pay, and consider how labour market conditions and institutions shape the relationship between human capital, productivity and wages.

Selected highlights

Journal article | Economic Journal
what_can_wages_and_employment_tell_us_about_the_uks_productivity_puzzle
This article uses individual data on employment and wages to try to understand whether real wage flexibility can help shed light on the UK’s productivity puzzle.
Journal article | American Economic Journal: Applied Economics
We evaluate the long-term impacts of a randomized Colombian training and job placement program.
Journal article | Review of Economic Studies
wages_experience_and_seniority
In this paper we study the sources of wage growth.
Journal article | American Economic Review
We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity and individual-level shocks.

Contacts

Contact IFS on 020 7291 4800 or mailbox@ifs.org.uk

Wenchao (Michelle) Jin
Research Economist
Jonathan Cribb
Senior Research Economist