ABSTRACT
This chapter will report on a wide variety of empirical results. The theoretical model which underlies these results is the following:
People are ‘paid’ their marginal product (net of certain training costs).
The compensation can include various amounts of monetary and non-monetary rewards, and the particular combination chosen by an individual (through an occupation) is partly dependent on his preference function.
There are many different skills and relevant dimensions of preferences, all of which are partly produced by family environment, education, on-the-job training, etc.
