Valencia, España
The stochastic frontier technique is used in this paper to measure the differences that arise between the potential wage, the one that should be obtained for an individual with particular socioeconomic characteristics given his/her investment in human capital, and the wage that actually s/he has in the labor market. The data set comes from the European Community Household Panel for the period 1995-2001.
The results show that geographical mobility get men closer to their potential wage whereas for women job mobility is mainly due to household factors or personal reasons and it contributes to move them away from their potential wage.
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