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WAGE GROWTH, HUMAN CAPITAL AND FINANCIAL INVESTMENT *
Author(s) -
BROWN SARAH,
TAYLOR KARL
Publication year - 2005
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2005.00472.x
Subject(s) - wage growth , human capital , economics , investment (military) , wage , panel data , british household panel survey , labour economics , exploit , finance , monetary economics , econometrics , market economy , politics , political science , computer science , law , computer security
The aim of this paper is to explore the relationship between wage growth, human capital and investment in financial assets at the individual level. We investigate this relationship using data from five waves of the British Household Panel Survey. We exploit panel data enabling us to determine the change in real wages experienced by individuals across four different time horizons, 1995–96, 1995–98, 1995–1700 and 1700–1. Our findings support a positive association between financial assets and wage growth with this relationship becoming more pronounced over time. In addition, our results suggest that investment in financial assets is positively associated with returns to human capital investment.