Incorporating the decision of how to organize the acquisition, use, and communication of knowledge into economic models is essential to understand a wide variety of economic phenomena. We survey the literature that has used knowledge-based hierarchies to study issues such as the evolution of wage inequality, the growth and productivity of firms,…

The positive impact of education on earnings, wages, and economic growth is well documented; however, the issue of education-occupation matching in developing countries has been largely ignored. Since workers' levels of schooling and their occupations' required level of education both affect wages, policymakers may find it useful to note if such…

A research review finds that (1) return on investment in training has rarely been calculated; (2) training has positive effects on wages and productivity; (3) different types of training have different effects on productivity; and (4) individuals and employers have objectives for training other than wages and productivity. (SK)

This document contains two essays: "Toward a High-Wage, High-Productivity Service Sector" by Lester Thurow; and "Service Sector Wages, Productivity and Job Creation in the U.S. and Other Countries" by Louise Waldstein. The first essay analyzes the recent and currrent U.S. economy under headings called Growth Nodes, Falling…

In policy debates, the U.S. education and training (ET) system is often blamed for the nation's eroding position in the world economy. Long-term international analysis reveals little evidence of deindustrialization or falling labor productivity. However, other industrial countries have caught up. Most economic research directly concerned with ET…

An examination of the innovative compensation systems called gainsharing, profit-sharing, pay-for-knowledge, two-tier wage plans, and lump sum bonuses has the following public policy implications: (1) more research is needed to evaluate the private and public sectors' experience with those alternative systems; (2) gainsharing and profit-sharing…

This booklet, prepared by the United States Chamber of Commerce, is intended to help create a better public understanding of how productivity affects this country and to suggest how people can change public policy in favor of a revitalized America. The booklet is organized in five sections. The first section defines productivity and introduces the…

Causes of the significant decrease in productivity growth and dramatic increase in unemployment in the United States since the mid-1960's are examined in order to test the underlying assumption of current economic policies that increasing capital savings and investments will create fuller and more productive employment. Data on trends in…

This document, a review of labor market effects of human capital, focuses on two related topics. Part I describes the following early findings of the research on effects of education and job training on the wage structure, labor turnover, and unemployment: decline of training with experience, positive and significant effects of training on length…

Relatively little is known about how unions affect employers because of a lack of data and research at the level of the firm. The little evidence available suggests that the effects are complex and go well beyond the effects associated with higher wages. In particular, a better understanding of the role that unions play in providing training and…

The current status of women and minority faculty is briefly reviewed, and alternative explanations for patterns of differences that exist are identified. Although female faculty have gained in their proportionate representation during the 1970s, they still lag behind their strength of a half century ago. In addition, female scholars tend to be…

A study of the training opportunities of high school graduates (about 825,000 in 1988) who work immediately after leaving school identified which members of that group get trained, by whom, and with what earnings consequences, based on the experiences of a sample of graduates from their graduation in 1972 until 1986. The following are among the…

The human capital and growth accounting approaches to measuring the benefits of education both have serious weaknesses. Like other goods and services, educational services have effects on the economic well-being of individuals and families. Because the economic well-being effects of education include private marketed and non-marketed impacts as…

A review of technological, political, social, and economic forces affecting the world of work indicates that in the eighties significant changes can be expected in the following areas: the nature of organizations, the relationship between individuals and organizations, the nature of the work force, the nature of the workplace, and the nature of…