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The Impact of Psychological and Human Capital on Wages

Year: 1997

Type: article

Abstract: Historically, economists have taken the position that psychological capital is either unobservable or immeasurable; thus, heretofore, little evidence has been available on the contribution of psychological capital to wages. Using data drawn from two different waves of the National Longitudinal Survey of Youth, we offer evidence that psychological capital has both a direct effect—via self‐esteem—and an indirect effect—through locus of control—on an individual's real wage. We find a person s wage is more sensitive to changes in self‐esteem than to comparable alterations in human capital. Both relative wages and human capital contribute to self‐esteem.

Source: Economic Inquiry

DOI: 10.1111/j.1465-7295.1997.tb01966.x

Authors: ARTHUR H. GOLDSMITH, JONATHAN R. VEUM, WILLIAM DARITY

Institutions: Washington and Lee University, Bureau of Labor Statistics, University of North Carolina at Chapel Hill, Bond University, Victoria University of Wellington

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2054037695

FWCI: 10.72

Cites: 40

Cited by: 375

Related to: 10