We develop and test a theory examining how frictions that restrict mobility across industries and frictions constraining mobility within an industry can co-occur to effectively isolate individual human capital, ultimately changing the firm's make-versus-buy decision for human capital....

Drawing on human capital theory, strategy scholars have emphasized firm-specific human capital as a source of sustained competitive advantage. In this study, we begin to unpack the micro-foundations of firm-specific human capital by theoretically and empirically exploring when employees perceive...

[...]The purpose of this article is to develop a clearerpicture of the importance of payments services to the bankingindustry. This goal is served by taking a broad view of thepayments business and analyzing information provided bylarge bank holding companies (BHCs) in their annualreports. BHCs...

[...]This paper is an interim report on continuingwork that we began in 1988. Our earlier research on thecauses of wage structure changes in the 1980s (Bound andJohnson 1992) showed that part of explanation A (theslowdown in the growth rate of that fraction of the workforce with high levels of...

United States wage performance has been disquieting.Between 1979 and 1993, realhourly compensation rose by just 5.5 percent.This poor average wage performancehas been associated with a dramatic increase in the dispersionof earnings: both in the returns to general characteristicssuch as...

Wage inequality for males in theUnited States increased dramaticallyduring the 1980s. Between 1979 and1990, the weekly earnings of collegegraduates increased by 2 percent while the real weeklyearnings of high school graduates decreased by more than16 percent. As a result, the wage premium for...

[...]I will describe the dilemma by first reviewing thecontext of stagnant wages and living standards. I will thensummarize some of the trends—political and demographic—that economic angst has accelerated. Finally, I will examine the future path of the education/earningsgap in the short run,...

We set up a neoclassical growth model extended by a corporate sector, aninvestment and finance decision of firms, and a set of taxes on capital income. We provideanalytical dynamic scoring of taxes on corporate income, dividends, capital gains, otherprivate capital income, and depreciation...

The provision of outsourcing services creates relationships between knowledge vested with thesupplier and the viability of outsourcing arrangements. Knowledge accumulation by theoutsourcee can reach a level where it poses a market entry or takeover risk to the outsourcer.Knowledge translates...

Building upon the works of Gilboa (1989), Shalev (1997) and De Waegenaere andWakker (2001), we show that a simple version of variation aversion, jointly witha myopia axiom allows to derive in an infinite setting a meaningful expressionfor evaluating income streams. Furthermore, we prove that...