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With this perspective, it is often assumed in models with quality differentiation and heterogeneous labor that goods of higher quality can only be produced by workers with certain minimum human capital (see, for example, Stokey 1991 and Verhoogen 2008).
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It is possible that the minimum wage affects human capital accumulation outside the workplace, which is neglected in our firm-level analysis.
From the last expression it is clear that, for a given job, there is a minimum level of initial human capital and learning abilities that the employee needs to have in order to generate positive profits with positive wages.
Over time, as immigrants find a strong state match, set roots within a community, and accumulate human capital, the minimum wage is less binding and thus has little effect on their mobility decision.
(1) The human capital theory predicts minimum wages to reduce training.
From a theoretical perspective, it seems plausible because the minimum wage induces an incentive for human capital accumulation among the least skilled, as the relative labor demand shifts towards relatively more skilled workers (see Section 2).
Human capital theory predicts that binding minimum wages prohibit wage cuts that are used by employers to finance training.
Costs of work loss will be calculated by multiplying the days on sick leave by the minimum daily wage in Spain according to the human capital approach.
Productivity losses will be calculated based on the human capital approach using information on the minimum and average daily wage in Spain (INE) [ 23].
Indirect costs (lost productivity): Lost productivity was calculated by using the human capital approach, which involves multiplying the minimum daily wage in Spain for 2011 by the number of days of sick leave, as reported by each patient.
Indirect costs (lost productivity): Lost productivity will be calculated using the human capital approach, which involves multiplying the minimum daily wage in Spain for 2014 by the number of days of sick leave, as reported by each patient.
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