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Abstract:
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The aim of this paper is to measure the returns to human capital. We use a unique data set consisting of
matched employer-employee information. Data on individuals' human capital include a set of 26
competences that capture the utilization of workers' skills in a very detailed way. Thus, we can expand the
concept of human capital and discuss the type of skills that are more productive in the workplace and,
hence, generate a higher payoff for the workers. The rich information on firm's and workplace
characteristics allows us to introduce a broad range of controls and to improve previous research in this
field. This paper gives evidence that the returns to generic competences differ depending on the position
of the worker in the firm. Only numeracy skills are reward independent of the occupational status of the
worker. The level of technology used by the firm in the production process does not directly increase
workers’ pay, but it influences the pay-off to some of the competences. JEL Classification: J24, J31 |