Sector-Specific Human Capital and the Effects of Job Displacement

Sector-Specific Human Capital and the Effects of Job Displacement
Author: Hosein Joshaghani
Publisher:
Total Pages: 84
Release: 2017
Genre:
ISBN: 9780355074895

By building a model of sector-specific human capital, it is shown how loss of sector-specific human capital can explain huge and persistent earning and wage loss of displaced workers. In addition, it is shown that concentration of displaced workers in severely declining sectors during recessions is a potential explanation for larger earning loss in recessions than job-losses in expansions.

Trade Dynamics with Sector-specific Human Capital

Trade Dynamics with Sector-specific Human Capital
Author: Adam Guren
Publisher:
Total Pages: 43
Release: 2014
Genre: Human capital
ISBN:

This paper develops a dynamic Heckscher Ohlin Samuelson model with sector-specific human capital and overlapping generations to characterize the dynamics and welfare implications of gradual labor market adjustment to trade. Our model is tractable enough to yield sharp analytic results, that complement and clarify an emerging empirical literature on labor market adjustment to trade. Existing generations that have accumulated specific human capital in one sector can switch sectors when the economy is hit by a trade shock. Nonetheless, the shock induces few workers to switch, generating a protracted adjustment that operates largely through the entry of new generations. This results in wages being tied to the sector of employment in the short-run but to the skill type in the long-run. Relative to a world with general human capital, welfare is improved for the skill group whose type-intensive sector shrinks. We extend the model to include physical capital and show that the transition is longer when capital is mobile. We also introduce nonpecuniary sector preferences and show that larger gross flows are associated with a longer transition.

Job Displacement

Job Displacement
Author: John T. Addison
Publisher:
Total Pages: 320
Release: 1991
Genre: Business & Economics
ISBN:

Human Capital, Employment and Bargaining

Human Capital, Employment and Bargaining
Author: Robert A. Hart
Publisher: Cambridge University Press
Total Pages: 222
Release: 1995-05-18
Genre: Business & Economics
ISBN: 0521453267

This book examines human capital investment, employment and bargaining at the level of the firm. It attempts the first summary of results that incorporates both human capital investment and employment decisions within firm - union bargaining models, emphasising investment in teams, or groups, of workers. The authors also examine human capital in relation to labour demand as well as the delineation between neoclassical and coalitional firms. Further, they investigate connections between, on the one hand, turnover costs and firm-specific human capital and, on the other, unemployment. Labour market policy topics recur throughout the book and include the choice between pure wage and profit sharing remuneration systems, the issue of whether training should be subsidised by governments, worksharing versus layoff decisions, payroll tax incidence and the choice of compensation system as well as the role of human capital in influencing a firm's voluntary ex ante decision as to whether or not to bargain with an established union.

Job Ladder, Human Capital, and the Cost of Job Loss

Job Ladder, Human Capital, and the Cost of Job Loss
Author: Richard Audoly
Publisher:
Total Pages: 0
Release: 2022
Genre: Human capital
ISBN:

High-tenure workers who lose their jobs experience a large and prolonged fall in wages and earnings. The aim of this paper is to understand and quantify the forces behind this empirical regularity. We propose a structural model of the labor market with heterogeneous firms, on-the-job search and accumulation of specific and general human capital. Jobs are destroyed at an endogenous rate due to idiosyncratic productivity shocks and the skills of workers depreciate during periods of non-employment. The model is estimated on German Social Security data. By jointly matching moments related to workers' mobility and wages, the model can replicate the size and persistence of the losses in earnings and wages observed in the data. We find that the loss of a job with a more productive employer is the primary driver of the cumulative wage losses following displacement (about 50 percent), followed by the loss of firm-specific human capital (about 30 percent).

Firm-specific Human Capital

Firm-specific Human Capital
Author: Edward P. Lazear
Publisher:
Total Pages: 48
Release: 2003
Genre: Bonuses (Employee fringe benefits)
ISBN:

One problem with the theory of firm-specific human capital is that it is difficult to generate convincing examples of investment that could generate the sometimes observed large and continuing effects on earnings. Another approach, called the skill-weights' view, allows all skills to be general in that there are other firms that use each of the skills. But firms use them in different combinations and with different weights attached to them. The skill-weights view not only has aesthetic appeal, but is consistent with the frequently observed large tenure effects. All of the implications of the traditional view are produced by this approach, and there are a number of other implications that distinguish the new view from the traditional one. The empirical evidence already contains some support for the skill-weights view.

The New Relationship

The New Relationship
Author: Margaret M. Blair
Publisher: Brookings Institution Press
Total Pages: 408
Release: 2002-07-31
Genre: Business & Economics
ISBN: 0815723628

Human capital and organizational capital are increasingly important as a source of value in many firms. But even as this is happening, organizational forms and employment relationships appear to be changing in ways that reduce loyalty and commitment and encourage mobility on the part of employees. Are these changes consistent in ways that contradict traditional theory and wisdom, or is the corporate sector getting a temporary boost in earnings by restructuring and cutting payrolls; but failing to make necessary new investments in human capital? The essays in this book provide intriguing new evidence on these questions. The contributors quantify the degree to which job stability is declining, and the costs of job loss to long-term workers; provide historical perspective on today's workplace changes; explore the reasons why work is being reorganized and decisionmaking tasks are being pushed downward; examine the rationale for and effect of equity-based compensation systems, both in old industries and in the newest high-tech sectors; and assess the "state of the art" of measuring and accounting for investments in human capital. This book is the result of a joint Brookings-MIT conference. In addition to the editors, authors include Eileen Appelbaum, Laurie Bassi, Avner Ben-Ner, Peter Berg, Joseph Blasi, Timothy Bresnahan, Eric Brynjolfsson, Allen Burns, Peter Cappelli, Greg Dow, Lorin Hitt, Douglas Kruse, Baruch Lev, Julia Liebeskind, Jonathon Low, Daniel McMurrer, Louis Putterman, Charles Schultze, and Anthony Siesfeld.

Human Capital Over the Life Cycle

Human Capital Over the Life Cycle
Author: Catherine Sofer
Publisher: Edward Elgar Publishing
Total Pages: 210
Release: 2004-01-01
Genre: Business & Economics
ISBN: 1843769751

. . . I am convinced that it should occupy a high position on the desk of policymakers. . . This book constitutes a good state-of-the-art study in this field and paves the way for further research in this direction. Marie-Claire Villeval, Economic Record This attractive publication is carried out as a clear attempt to gain access to a wider audience, relaxing formal and technical details, which makes the lecture easier. . . An international comparison of literature or educational and labour experiences is provided in every contribution in the book, helping to obtain a wider perspective of the problems tackled. Carmen García and Julio López, Education Economics This book makes a novel contribution to economics of education in several key respects. It highlights a broad number of crucial factors over the individual s life cycle that underlie inequalities in education and in the labour market. . . It is amazing how limited our knowledge is about these interactions despite their high priority in national as well as EU-level policy-making. This is a timely book concerned with topics of high policy relevance. Moreover, the authors have well succeeded in their attempt to write "in a style that makes this work accessible to a wider audience", using the editor s words. It is most important that academics as well as politicians are made aware of the considerable knowledge gaps that still prevail in our understanding of the role of education and training for the individual s success or failure in school and in working life. Rita Asplund, The Research Institute of the Finnish Economy (ETLA), Finland In the last decade, changes occurring in the demand for skills have produced significant effect on the functioning of labour markets in Europe and elsewhere. The challenge posed by a knowledge based society for sustained growth has been at the centre of the European strategy for employment and has important implications for the design of labour market policies. This book brings together a wide range of contributions written by leading experts on key issues such as: schooling systems, transition from school to work and lifelong learning, thereby providing an essential reference for both researchers and policymakers. Claudio Lucifora, Università Cattolica, Italy Human Capital Over the Life Cycle synthesises comparative research on the processes of human capital formation in the areas of education and training in Europe, in relation to the labour market. The book proposes that one of the most important challenges faced by Europe today is to understand the link between education and training on the one hand and economic and social inequality on the other. The authors focus the analysis on three main aspects of the links between education and social inequality: educational inequality, differences in access to labour markets and differences in lifelong earnings and training. Almost all the stages in the life cycle are tracked from early childhood to stages late in the working life: firstly the characteristics and effects of schooling systems, then the transitions from school to work and, finally, human capital and the working career. Academics and researchers of European studies, labour economics and the economics of education will all find this novel and analytically sound book of interest, as will sociologists and policymakers in Europe.

New Analyses in Worker Well-Being

New Analyses in Worker Well-Being
Author: Konstantinos Tatsiramos
Publisher: Emerald Group Publishing
Total Pages: 320
Release: 2013-11-13
Genre: Business & Economics
ISBN: 1783500573

In no economy do all employees fare equally. Some variation stems from innate worker heterogeneity, some from differential human capital investment, some from imperfect information, some from demand shocks, some from asymmetric technological change, and some from government policies.