Labor Market Search, Informality, and On-the-Job Human Capital Accumulation PDF Download
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Author: Matteo Bobba
Publisher:
ISBN:
Category :
Languages : en
Pages : 65
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Book Description
We develop a search and matching model where firms and workers produce output that depends both on match-specific productivity and on worker-specific human capital. The human capital is accumulated while working but depreciates while searching for a job. Jobs can be formal or informal and firms post the formality status. The equilibrium is characterized by an endogenous steady state distribution of human capital and by an endogenous formality rate. The model is estimated on longitudinal labor market data for Mexico. Human capital accumulation on-the-job is responsible for more than half of the overall value of production and upgrades more quickly while working formally than informally. Policy experiments reveal that the dynamics of human capital accumulation magnifies the negative impact on productivity of the labor market institutions that give raise to informality.
Author: Matteo Bobba
Publisher:
ISBN:
Category :
Languages : en
Pages : 65
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Book Description
We develop a search and matching model where firms and workers produce output that depends both on match-specific productivity and on worker-specific human capital. The human capital is accumulated while working but depreciates while searching for a job. Jobs can be formal or informal and firms post the formality status. The equilibrium is characterized by an endogenous steady state distribution of human capital and by an endogenous formality rate. The model is estimated on longitudinal labor market data for Mexico. Human capital accumulation on-the-job is responsible for more than half of the overall value of production and upgrades more quickly while working formally than informally. Policy experiments reveal that the dynamics of human capital accumulation magnifies the negative impact on productivity of the labor market institutions that give raise to informality.
Author: Italo Lopez Garcia
Publisher:
ISBN:
Category :
Languages : en
Pages : 47
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Book Description
Labor informality accounts for nearly 40% of the labor force in Latin America. While a more traditional view sees this phenomenon as a consequence of barriers to mobility resulting from poorly designed labor regulations, recent work provides evidence that individuals choose informal jobs based on their comparative advantage. In this paper, I develop a dynamic life-cycle model estimated with rich Chilean longitudinal data, in which individuals jointly decide on their schooling and labor participation, to investigate the extent to which comparative advantage drives participation in informal labor markets. I find that human capital accumulation and preferences for job amenities explain up to 72% of transitions between the informal and the formal sector while labor market segmentation accounts for 28%. These barriers to mobility are decreasing in education. These results are largely driven by heterogeneous preferences and returns to skills across sectors. For example, more educated individuals assign a higher relative importance to non-wage benefits, particularly in formal jobs, while less educated individuals value more monetary rewards; high ability workers are more productive in the formal sector, while low ability workers are more productive in the informal sector; and unlike labor market experience acquired in informal activities, experience acquired in formal jobs is transferable across sectors. Finally, using the model to simulate the effects of a 20% wage subsidy in formal jobs for young workers, I find that individuals react to labor market expectations and their decisions are persistent. The subsidy would decrease the incentives to informality for both targeted groups and younger workers, while the reduction in informality rates as a consequence of the policy would remain persistent for all the life-cycle.
Author: Kenneth Burdett
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We analyze an equilibrium labor market with on-the-job search and experience effects (as workers learn by doing). The analysis yields a Mincer wage equation with worker fixed effects and endogenously determined firm fixed effects. Equilibrium sorting - where over time more experienced workers also tend to move to better paid employment - has a significant impact on wage inequality.
Author: Gerbert E. Hebbink
Publisher:
ISBN:
Category : Human capital
Languages : en
Pages : 176
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Book Description
Author: Jacob Mincer
Publisher: Edward Elgar Publishing
ISBN: 9781782541554
Category : Business & Economics
Languages : en
Pages : 456
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Book Description
'The books should. . . . be bought by every university library. The research reported here is important, the exposition is lucid, the sequencing of chapters is sensible and the retrospective aspect of the volumes provides a fascinating insight into the working methods of one of the great economists of our time.' - Geraint Johnes, International Journal of Manpower Studies in Human Capital, the first volume of Jacob Mincer's essays to be published in this series, assesses the impact of education and job training on wage growth. It offers an authoritative study of the effects of human capital investments on labor turnover and the impact of technological change on human capital formation.
Author: Niklas Engbom
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Using panel data from 23 OECD countries, I document that wages grow more over the life-cycle in countries where job-to-job mobility is more common. A life-cycle theory of job shopping and accumulation of skills on the job highlights that a more fluid labor market allows workers to faster relocate to jobs where they can better use their skills, incentivizing accumulation of skills. Lower labor market fluidity reduces life-cycle wage growth by 20 percent and aggregate labor productivity by nine percent across the OECD relative to the US. I derive a set of testable predictions for training and confront them with comparable cross-country training data, finding support for the theory.
Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
ISBN: 1451854781
Category : Business & Economics
Languages : en
Pages : 98
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Book Description
This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
Author: Been-Lon Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We construct a search model with endogenous human capital and labor participation to study the growth effects of short-run frictions and the effectiveness of human capital policies. Employment, learning effort, and output growth increase with more effective learning, better labor-market matching, lower job separation, or less costly vacancy creation. Although output growth, employment, vacancy creation, and learning and search effort are most responsive to changes in a human capital policy that directly affects learning effort, such a policy need not be more beneficial for welfare. The effects of human capital policies become larger as the severity of labor-market frictions rises.
Author: Daniel Parent
Publisher: CIRANO
ISBN:
Category : Seniority, Employee
Languages : en
Pages : 32
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Book Description
Author: Alejandro Nakab
Publisher:
ISBN:
Category :
Languages : en
Pages : 178
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Book Description
This dissertation consists of three chapters. Chapter 1 and Chapter 2 jointly offer an explanation for why workers in richer countries have faster rates of wage growth over their lifetimes than workers in poorer countries. We propose that workers in richer economies receive more firm-provided training. In Chapter 1, we document two main facts: the share of workers who receive firm-provided training increases with development, and that this is a key determinant of worker human capital investments. In Chapter 2 we build a general equilibrium search model with firm-training investments and frictional labor markets. Our model suggests firm-training accounts for a large share of the cross-country wage growth differences. We find that self-employment is a key factor explaining the lack of training in the poorest economies, whereas labor market frictions are key to explaining training differences within firms as countries develop. Finally, our model predicts considerable inefficiencies in human capital investments and sizeable aggregate gains from training subsidies to firms, which may be particularly desirable in poor countries where economic environments disincentivize training. Chapter 3 studies how exporting shapes experience-wage profiles. Using detailed Brazilian employer-employee and customs data, we document that workers' experience-wage profiles are steeper in exporters than in non-exporters. Aside from self-selection of firms with higher returns to experience into exporting, we show that workers' experience-wage profiles are steeper when firms export to industrialized destinations. We propose that this result is likely driven by faster human capital accumulation of workers in firms that export to advanced economies. To support our preferred hypothesis, we use the World Bank Enterprise Surveys and document that exporters are more likely to train workers than non-exporters, especially when they adopt foreign technology.
